First step in rebuilding

kd081708 · ‎10-08-2013

Hey everyone,

My Chapter 7 will be discharged approximately the 22nd of this month and I have a couple of questions as to what I should after it.

First, I was able to obtain an auto loan while my chapter 7 was still open (through 722 redemption) but of course it has an extremely high interest rate. My plan was to continue making my payments on time until January and then try to refinance. Is this a good idea or should I wait longer?

Also, currently I have no credit cards or anything and burned a lot of the popular ones in my bankruptcy (First Premier, Capital One, Credit One, Sears, and Macy's). Should I try and get a secured card immediately after discharge to begin re-establishing my credit?

My current credit scores all from MyFico are currently in the 500-515 range.

Any and all feedback will be greatly appreciated.

Starting Score: EQ 450 EX 498 TU 470
Current Score: EQ 574 EX 581 TU 572 Barclay 596 Merrick 612
Goal Score: 600 all by 06/30/2014

Take the myFICO Fitness Challenge
_______________________________________________________

myfreshstart27 · ‎10-08-2013

@kd081708 wrote:
Hey everyone,

My Chapter 7 will be discharged approximately the 22nd of this month and I have a couple of questions as to what I should after it.

First, I was able to obtain an auto loan while my chapter 7 was still open (through 722 redemption) but of course it has an extremely high interest rate. My plan was to continue making my payments on time until January and then try to refinance. Is this a good idea or should I wait longer?

Also, currently I have no credit cards or anything and burned a lot of the popular ones in my bankruptcy (First Premier, Capital One, Credit One, Sears, and Macy's). Should I try and get a secured card immediately after discharge to begin re-establishing my credit?

My current credit scores all from MyFico are currently in the 500-515 range.

Any and all feedback will be greatly appreciated.

I'm still in the learning stages as you are... but First Premier accepted me for a card even though I have a charge-off from them and owe them money... so it's not hopeless getting back in with them. Not sure if you want to swim with those sharks again though (I declined).

age: 24 | status: rebuilding mode | short term goal: 650 | long term goal: 800

kd081708 · ‎10-09-2013

Thanks for the reply!

Yeah I dont think I want to deal with them anymore but if I cant get something I may have to.

Im thinking maybe my local credit union will have something that can help me out with a much lower interest rate.

Starting Score: EQ 450 EX 498 TU 470
Current Score: EQ 574 EX 581 TU 572 Barclay 596 Merrick 612
Goal Score: 600 all by 06/30/2014

Take the myFICO Fitness Challenge
_______________________________________________________

FaaastCash · ‎10-09-2013

One way to repair an unfavorable credit history begins with paying off all the debts that you have previously owed. You can begin to rebuild credit positively once you are financially secured. Get controled of your debt load and handle your situation positively.

ezdriver · ‎10-09-2013

@FaaastCash wrote:
One way to repair an unfavorable credit history begins with paying off all the debts that you have previously owed. You can begin to rebuild credit positively once you are financially secured. Get controled of your debt load and handle your situation positively.

Can you explain what the benefit is to paying debts that have been discharged in a bankruptcy? I'm really interested in your feedback.

ezdriver · ‎10-09-2013

@kd081708 wrote:
Hey everyone,

My Chapter 7 will be discharged approximately the 22nd of this month and I have a couple of questions as to what I should after it.

First, I was able to obtain an auto loan while my chapter 7 was still open (through 722 redemption) but of course it has an extremely high interest rate. My plan was to continue making my payments on time until January and then try to refinance. Is this a good idea or should I wait longer?

Also, currently I have no credit cards or anything and burned a lot of the popular ones in my bankruptcy (First Premier, Capital One, Credit One, Sears, and Macy's). Should I try and get a secured card immediately after discharge to begin re-establishing my credit?

My current credit scores all from MyFico are currently in the 500-515 range.

Any and all feedback will be greatly appreciated.

No way around high-rate auto loans at this point. I'm in the same situation but I plan to keep my car for 10 or more years [it is a 2007 Mercedes E350] so I have have many years of ownership without payments. That makes the high-rate loan bearable.

You can get two secured CC with First Progress for small deposits. I did $300 each and I will eventually cancel them once I buy my house next year. My Ch 7 discharge occured in April of this year and you can see my scores below that were pulled today.

Get started onece you receive confirmation of your discharge. Search this forum for rebuilding tips ... especially on utilization, timing of payments, strategy for managing multiple tradelines, mix of tradelines, etc. There is a wealth of information here and lots of folks ready to help with encouragements and answers without being judgemental. It is not rocket science. It just takes committment and tenacity combined with good tactical actions based on tips you get here in this forum.