Like several before me, divorce left me in a financial mess and broken. I filed CH 13 in 2014 and stayed away from credit. I lived much more frugally and gained a better perspective on needs and wants. I began to appreciate my inner financial discipline I could exercise living alone and saved some money despite my Bk payments. Three years into my Bk I decided to get my credit profile back in shape with a long range goal of buying a home. I started reading this forum daily and with the numerous success stories and tons of valuable information I set upon that mission.
I started with a focus on (quality) secured cards that I would like to keep after graduating. Within 9 mos., I added FNBO, NFCU, and BOA secured cards. I used them sparingly and they each graduated with CLIs (FNBO grew best). Surprisingly, Discover approved me for an unsecured card and later PenFed approved me for the Promise and Cash Rewards. I didn’t apply for any store cards. The limits on these cards started small, but set a foundation for the future.
My last inquiry was in April 2018 with my sights set on applying for a mortgage in the summer of 2019. I focused on strengthening my profile and learned and practiced AZEO. I was finally discharged in mid July and was able to close on my new home on 9/17. I was able to get a VHDA loan here in VA @ 3.75%. All totaled, I paid $400 ($350 inspection) out of pocket on my modest $255K home.
On 9/18, this was the last day for the Delta AMEX sub of 70K for a $2K spend, so I decided to do a mini spree (like all those I read of while sitting on the sidelines). All the information I gained here helped me plan.
I like to travel but have burnt Chase in the past (via cards they purchased from other lenders). So, I set my sights on the US Bank Cash card with a goal of the AR in 2021 when my BK is gone. They pulled EQ and after 2 declines, I was approved for $3K.
Next I went for the Ducks Unlimited. My FNBO Plat has grown to $9K, so I thought I had a chance. Instant approval for
$7.5K. F9 718 only 2 mortgage inquiries. < 9% útil. Income $85K.
I tried NFCU, but they won’t touch me until a year after discharge. My CR is at 4K and I’ll probably pc it to a Plat.
Discover was next and was instantly approved for a second IT at $5K @13.99. It’s lower than the first but the rate is better. I know it will grow down the line and I’ll combine it with the first.
Last was AMEX. I burnt them back in 2002 for $4K and never thought much about getting back in until I began reading the board. I had no pre-approvals on the site but gave it a whirl. When it didn’t decline me immediately, I got optimistic and finally it said approved. $1K for now but I can see the future.
I called PenFed and got CLIs from 1K to 7.5K on my Power Cash and $3.5 K to $7.5K on the Promise.
All totaled, it amounts to 1 $25K approval from NFCU, but I’M more than pleased with this outcome. I know NFCU will be there down the road . I won’t need to apply again for at least a year but hopefully until spring of 2021.
To all who have shared your successes and knowledge, I thank you. You have no idea who I am but you have helped me start over again. I hope this might help someone else in the struggle.
EQ9 732 @time of PenFed app. EQ 8 700. Believe DISCO & AMEX pulled EX 8 @ 677.
AU
