Credit rebuilding flatline......^........^.....^..................

[NewBegin_55311]

I feel like I'm in a bit of a holding pattern here. Scores haven't changed more than +1 or -1 in 3-4 months now. I am thinking there is still something else I can do to give my credit rebuild a pulse again, so I'm posting this update in hopes of a little advice. All is welcome.

My story:

CH 7 filed 2/26/14 TU at the time of Ch7 557

Discharge date: 5/27/14

myFICO Scores (as of 9-6-15):

EQ 684

TU 655

Experian 669

I have a $200 secured Capital One card (now at $500), a $500 QuicksilverOne card (now at $3500), a Barclay card (now at $3800), a car loan of $1000 (terms of 24 month and I'm in month 3 of payments)...

Thanks in advance to all willing to share their thoughts

[Anonymous]

How is your utilization on your credit cards? Optimal would be no more than 10%. Most people recommend a zero balance on 2 cards and 10% showing on the third. And patience. Lots and lots of patience. The patience part is what I have struggles with. 😃

[NewBegin_55311]

I have been using all the cards each month and only allowing a $6.00 charge to show as a balance each month on the secured Capital One card. I've tried carrying a balance on the other cards and it always seems to ding me with a negative.

[Anonymous]

I wonder if you need a little more to report, around $40a month on your secured? I don't know, but I have read that  utilization that is too low won't help either. I am at about 20% myself, but it is spread over a few cards. I am working to get my store cards paid off this month and carry my utilization on my cap 1 card. But hopefully others will chime in on this, as I am only a couple of months into my rebuild. I know as far as my car loan goes, it seems it only adds a point or two are most each month. But I also have a small personal loan so I have a good mix of credit reporting.

[Anonymous]

First congrats on making progress and having a plan. Success starts with a plan, focused dedication to it, which means being consistently patient each and every month. 

Optimally make sure that you have just 1 account that reports between 1-9% at the statment close. Don't make any additional charges between the due date and the statement close date.  And you're going to have to be patient as you pay down your car note. EQ more than the others seems to see a high balance on an installment loan (which makes sense at the beginning of a loan that the balance is high) as something negative to dinge you for. I believe once you pay down 30% that goes away. 

In all, keep doing what you're doing. You have to be patient and just live your life consistently. Pay on time, don't maxx out your cards, pay them down below 10%, let one report, and again be patient. 

Any other negative things on your reports not noted? 

[Anonymous]

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@NewBegin_55311 wrote:

I feel like I'm in a bit of a holding pattern here. Scores haven't changed more than +1 or -1 in 3-4 months now. I am thinking there is still something else I can do to give my credit rebuild a pulse again, so I'm posting this update in hopes of a little advice. All is welcome.

My story:

CH 7 filed 2/26/14 TU at the time of Ch7 557

Discharge date: 5/27/14

myFICO Scores (as of 9-6-15):

EQ 684

TU 655

Experian 669

I have a $200 secured Capital One card (now at $500), a $500 QuicksilverOne card (now at $3500), a Barclay card (now at $3800), a car loan of $1000 (terms of 24 month and I'm in month 3 of payments)...

Thanks in advance to all willing to share their thoughts

---

I would suggest closing the secured Cap One card and opening a second unsecured Cap One account that will grow with you.

You're doing fine for only 16 month out from BK discharge. Don't worry about the lack of score growth at this point, you're actually close to the BK ceiling. You'll probably get close to 700 after you pass the 24 month mark.  As many others have noted, until the BK is gone you will be limited to around 700-725.

You will pretty much be in a holding pattern until the BK is gone.

[NewBegin_55311]

Thanks everyone for the great feedback, I apprecite it

Norman - can you speak from experience (or posts from others with said experience) that closing down a secure card won't ding my credit with a negative?

If that is the route to take, should I open the new card before or after closing the secured card?

[Anonymous]

I don't have Norman's expertise, but for me, personally, I opened my unsecured card while my secured card is still open. In a month, I will apply for my second unsecured card with cap1. Once I have that, I will close my cap1 secured card, and use that money to open a secured card with SDFCU to build a credit relationship with them. I know it seems like a long drawn out kind of plan, but I am not only trying to rebuild my credit, but practice patience as well. My plan is that by January 2016, I won't need secured cards at all, at which time that money will go directly into savings.

But that's just me and my plan. I am sure those with more experience have better plans, or maybe even faster ones.

[NewBegin_55311]

Well, I applied for the Capital One VentureOne card this morning and was approved. $10K limit!! Thats 3X the limit of any of my other cards! 

Immediately closed my secured card. Thinking that in 6 months I can apply for another card with a higher limit and close one of the $3K limit cards.

Happy dance!

[Anonymous]

Yay and congrats!!