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Chapter 13 Rebuild Advice?

600to700
Established Member

Chapter 13 Rebuild Advice?

Hi all, long time reader here - I am currently in my first year of a chapter 13 - i've received my attorneys approval to establish credit not-to-exceed $15K.  I've burned A LOT of folks with this and looking to reestablish my relationships, specifically with NFCU but they won't do anything until it's discharged or dimissed apparently.  No collections / loans / one card (low limit see below).

 

Here's where I am so far:

$500.00 Mission Lane Unsecured (zero balance)

$2000.00 DCU Credit Builder

 

Is there anything else I can do?  Apply for anything else?

 

Thank you.

Message 1 of 5
4 REPLIES 4
FLLGuy
Regular Contributor

Re: Chapter 13 Rebuild Advice?


@600to700 wrote:

Hi all, long time reader here - I am currently in my first year of a chapter 13 - i've received my attorneys approval to establish credit not-to-exceed $15K.  I've burned A LOT of folks with this and looking to reestablish my relationships, specifically with NFCU but they won't do anything until it's discharged or dimissed apparently.  No collections / loans / one card (low limit see below).

 

Here's where I am so far:

$500.00 Mission Lane Unsecured (zero balance)

$2000.00 DCU Credit Builder

 

Is there anything else I can do?  Apply for anything else?

 

Thank you.


Hello and Welcome congrats making it through the 1st year - just keep steady the light at the end of the tunnel will be near. OK, so you have one CC thus far (Mission Lane) to help maximize your scoring most on here follow the 3 revolvers (credit cards) + 1 Loan, which you already have which is fantastic news in regards to rebuilding.  Looks like you pick up 2 more Credit Cards to help you along your journey to healthy rebuild.

If Mission Lane made you an offer "OLLO Rewards" may also give you an offer pretty soon (invite only) which I would recommend as they don't have predatory fees like the Credit Ones.  I'm not knocking on Credit One lord knowns I needed them but, my point is go after cards if possible that perform well and don't charge anual fees.   Ok back to the mission on-hand, Check out Capital One Prequalify link, it's a soft pull see if they offer you their Platinum card, if they do then take it this card does qualify for upgrades to other higher tier programs after 6mos - 1yr depending on your spend and usage.  Go check out, Discover prequalify link as well you may qualify for their "secured card" which is not bad plus it graduates which is evern more important.  if your unsecured options are slim based on your credit profile then "secured" options are a viable solution but make sure to do your due-dilligence and ensure the card graduates.  Almost forgot, try going for the Apple Card - you'll be surpised it's a Softpull but some folks during BK 13 get approved (like my wife but not me).  They may start you with a low limit but Apple can grow with you which is even more important.   There's posts on here also from folks that went the secured credit path with TD Bank which i'm told also graduates.  Also, don't forget there's your local credit unions that can also offer the same options starting secured then later graduating or who knows some even get unsecured but, i would excercise caution and research and ask the customer service reps ahead of time to assess accordingly.  Forgot to include another decent Credit Card recently it's Mercury Master Card.

 

Out of curiousity - did you burn Navy Federal?   is that why they won't approve you?  Did you try and got denied?  Just so you know, i myself had a banking relationship with NFCU at my 3rd year into BK13 small deposits like $15 a month.  I app'd for their secured card just a few months ago and was approved I moved $200.  However, I did not burn NFCU in my BK.  That's my reason for asking if you burned them, as some  have documented on these boards....you may have to pay them back apart from your what you pay your trustee to make them whole again.  I only say it as NFCU has proven to reward their consumers despite prevoius BK history but as always - research and due dilligence your miles may vary (ymmv).

 

Softpull Preapproval link:
https://ficoforums.myfico.com/t5/General-Credit-Topics/Soft-pull-PREAPPROVALs-Updated-4-20-21/m-p/59...

BK Friendly cards:

https://ficoforums.myfico.com/t5/Bankruptcy/Bankruptcy-Friendly-Credit-Cards-Pt-2/td-p/3999737










Message 2 of 5
HowDoesThisAllWork
Frequent Contributor

Re: Chapter 13 Rebuild Advice?

@600to700 

 

Welcome to the forum.  As others have stated (looking at you @FLLGuy !) I would start with Capital One and Discover.  Honestly, I would start with Discover first.  Then Capital One.   I would go - as a starting point - for the secured Credit Cards.  That requires, however, that you have some $400 available (I believe - but do not quote me on these numbers - that both Capital One and Discover has a $200 minimum.....but that is easily confirmed | refuted).

 

I would say that - if you can | are eligible - go for Navy Federal Credit Union.  I recently joined and absolutely love them.  Their secured card is called the nRewards card.  They also have a pre-qualify link.

 

Three revolvers and one installment loan is a fantastic start.

 

Just be advised that the Capital One secured card has a history - which may or may not apply to you - of being "bucketed".  That means that it will never graduate and that it will not provide you with a CLI (Credit Line Increase) for a long time (if ever).  Now, not throwing shade on Capital One.  Just letting you know that you *very well could* be bucketed.  Also, keep in mind that Capital One does the triple-pull.  That means, that Capital One performs a hard pull on each of the three Credit Reporting Agencies (Equifax, Experian, Transunion).  May or may not be important to you....but know it nonetheless.

 

So, if Discover and NFCU are available options.....go for them.  Unless the Capital One offering suits you well.  Only you can know that.

 

Keep on, keeping on!  You got this.  We are all here to help.

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Message 3 of 5
600to700
Established Member

Re: Chapter 13 Rebuild Advice?

Thank you all very much! I'll keep you posted as hopefully progress will be helpful to others.

Message 4 of 5
jmw1
Regular Contributor

Re: Chapter 13 Rebuild Advice?


@600to700 wrote:

I've burned A LOT of folks with this and looking to reestablish my relationships, specifically with NFCU but they won't do anything until it's discharged or dimissed apparently.  No collections / loans / one card (low limit see below).

 


I'm in a similar position as you and going into my 3rd year of BK13. I burned everybody worth mentioning on the bank side.  You are in for a somewhat rough time because I've had problems rebuilding as well. Use the myfico soft pull thread. Don't waste a hard inquiry unless you know you will be accepted because most will turn you down.  You will have to lean on the predatory lenders if you can't do large deposits on secured cards and need larger credit lines for things like car rentals and hotels. You don't need large credit lines to build credit for a mortgage.  Just three small tradelines with AZEO and no lates since CH13 is enough to get a mortgage.

 

Ollo - No AF. Need invite. Subscribe to the free version of Experian credit monitoring. Ollo may become one of the sponsored cards that will offer you a 90%+ acceptance probability invite on Experian credit monitoring.

Synchrony - wait until after the 24th month of your CH13 if you burned them. They have softpull links.

Comenity - They have a few niche Visa products and they might preapprove after the 12th month. They have softpull links.

Indigo - Wait until no AF. Credit limit will be $300 forever. Softpull link available.

Cap 1/Discover/Chase/Amex/Citi/Barclays/US Bank (all IIB) - Forget it.  Some have softpull links.

Apple Card - No for me. Always initial softpull. Have heard others get it during CH13. You get a free TU score everytime you get turned down.

NFCU - Secured only to start. Put in the minimum $200 because I've heard it will graduate to $2k.

Penfed - I've heard good things if not IIB, but I haven't tried myself yet

 

 

Message 5 of 5
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