Hi! I love this forum...so many tips, advice and good people to help others in a stressful time in their life.
I filed my CH 13 in Oct 2018 with starting scores of 623EQ/540EX/560TR with now scores 633EQ/545EX/540TR. I burned NFCU and USAA secured cards and just have other minor stuff added. I was late on my mortgage and got behind so that was a major reason I filed and then I had a large overpayment (originially $40,000 but reduced to $18,000) from a government agency that needed to be payed back. My total owed is about $29,000 for everything. I have a 5 year plan but have already spoken with the Trustee office that I can pay off in 3 years or so. I DO NOT like my lawyer as I don't think she knows everything so I call the Trustee's office for specific questions to be answered (Trustee office was able to tell me my total pay off amount when my lawyer couldn't and they were able to confirm with me that I am allowed to make additional payments online when my lawyer said I'm not allowed and its not possible). From what I see on my report, just my student loans linger as I am finishing my undergrad.
So from lurking in the boards, since the Fall, it seems like there is hope to work on my score while in CH 13 and discharge with a high 600 to low 700s, right? I got the green light to get some secured cards as a start, so I'm going to start there. I want to maintain a good shedule of paying my bills on time (is that gardening?). I also would love to buy a vehicle during this time and confirmed with the Trustee's office the paperwork to take with me to have the dealership sign, but unsure if its a good move due to my scores. Its definitely a WANT and not a NEED as I have a paid off car so the best financial advice for me is probably to wait.
Is there hope for better scores during CH 13?
Thanks in advance for the tips and advice.
Welcome to the Forums! I'm no expert on Chap13's. Just 7's cause I've been there done that. I dont like seeing an unaswered topic. So here's to hoping someone comes along and can give you some advice in this matter. I can say check some pre-quals to gauge where your at. Like Cap1 or Disco. They're all SP's. Could go with Open Sky secured. No credit check and reports as unsecured every month on all 3 CRA's. But I will say Good Luck!
There is definitely hope LadyRita. This is the last month for my CH13 and my scores are in the high 600s. I started with OpenSky ($1500) and believe that set me up with approvals for FNBO secured and months later Discover (expected to be offered secured). FNBO grew the best.
I'm currently in 13 as well and yes you can work on your scores while you're in 13. As far as your car, I would definitely avoid that debt if you can as you already have a paid off and is working fine. In time, you'll receive some offers in the mail to sign up for sub prime cards, but these can be a great start to a bright future. I would check out Credit One, but watch out for the crazy AF they may offer you as well.
I was discharged a week ago today. My Fico 8s are currently in the 670's. I was pre-approved for an FHA mortgage through NFCU and through a lender who's LO frequents these boards. I started my rebuild about 18 months ago. Started with a secured card from Green Dot, an unsecured from Credit One and a credit builder loan with my local CU. I kept my utilization low, never made a late payment and eventually I qualified for a Discover It card with an $800 SL. I joined NFCU shortly after and got their Secured card. That graduated 5 months later with a $2K limit.