Ground Zero

[Anonymous]

Hi all!  I've been lurking around as a guest for sometime gathering all the info I can from the public view but today I decided to utilize myFICO interactively. I have had quite the landslide, declaring bankruptcy chapter 7 in 2014, tumbling even further after discharge due to student loans, a nasty custody battle and a divorce- but my poor credit is no one else's fault but my own. I've started making modest gains to improve my score but I still have a lot of ground to cover. 
My scores are 625/631/608. First the good. I have 3 secured credit cards, 2 that have been open for 3.5 years and 1 for about 6 months with credit limits of $1500,$2000,$2500 that I pay immediately each month after every use so my utilization is always 0-1%. I entered into an income based repayment plan with Navient and so I have 6 student accounts with satisfacty payment history (I only pay $31 across all based on this repayment plan)  

I have several paid as agreed installment loans that were paid and closed prior to bankruptcy. 
Now the bad. I have a chapter 7 bankruptcy, discharged 10/2014. I also have 2 charge offs, 1 paid and one unpaid. 1 car loan listed as collection included in bankruptcy and one collection post bankruptcy from 2018. 

I have a high interest car loan that is paid as agreed that is 6 months old. 

That all said- I'm here to learn. Rebuilding my credit has been something I've been working hard on in the last year and I know it will take work, especially after messing up again after bankruptcy.  I eventually want to buy a home but my most immediate goal to repair my credit is to just be able to qualify for better rates on my a refinance, which I hope to do in 6months. 

Not sure that all this info was really necessary to just introduce myself and to say thanks from the lurker who took her score from 497/501/527 a year ago to where it is now by slowly and surely following the advice offered in these forums. 

[Pit-Smoker]

Welcome!  and nice work, so far!  Maybe.... look to refi that Car Note as soon as someone says you're able?   Your socres are pretty good after such a set of events, so just keep pluigging!!  

[Anonymous]

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@Anonymous wrote:

Hi all!  I've been lurking around as a guest for sometime gathering all the info I can from the public view but today I decided to utilize myFICO interactively. I have had quite the landslide, declaring bankruptcy chapter 7 in 2014, tumbling even further after discharge due to student loans, a nasty custody battle and a divorce- but my poor credit is no one else's fault but my own. I've started making modest gains to improve my score but I still have a lot of ground to cover. 
My scores are 625/631/608. First the good. I have 3 secured credit cards, 2 that have been open for 3.5 years and 1 for about 6 months with credit limits of $1500,$2000,$2500 that I pay immediately each month after every use so my utilization is always 0-1%. I entered into an income based repayment plan with Navient and so I have 6 student accounts with satisfacty payment history (I only pay $31 across all based on this repayment plan)  

I have several paid as agreed installment loans that were paid and closed prior to bankruptcy. Won't help you much - FICO gives very few points for prompt payment of Installment Loans of any type - Auto, Mortgage, Student or Personal - but miss a payment and those points come off faster than blubber off a dead whale.
Now the bad. I have a chapter 7 bankruptcy, discharged 10/2014. I also have 2 charge offs, 1 paid and one unpaid. 1 car loan listed as collection included in bankruptcy and one collection post bankruptcy from 2018.  The BK is what is holding your scores back. I also had a BK and my scores moved very slowly in a narrow range but always in the "poor" credit area. When the BK came off my credit file the scores shot up almost immediately. Take a look at my sig line and try to figure out when the BK came off, it won't be hard to see.

I have a high interest car loan that is paid as agreed that is 6 months old. Nice to know but it gives you next to nothing in FICO points, in fact it probably cost you points when you paid it off. Between paying off my mortgage in April of one year and my car in May of that same year I freed up over $1,400 a month in cash flow and LOST about 100 FICO points. You would think that much extra spending power would be a good mark on a credit file, but FICO looks at how likely you are to make NEXT MONTH'S payment - and when you paid the last payment this month you are guaranteed to NOT pay next month, so you lose points to make your score reflect the higher probability that you won't be paying that loan next month. No one ever said FICO makes sense (at least I never said it).

That all said- I'm here to learn. Rebuilding my credit has been something I've been working hard on in the last year and I know it will take work, especially after messing up again after bankruptcy.  I eventually want to buy a home but my most immediate goal to repair my credit is to just be able to qualify for better rates on my a refinance, which I hope to do in 6 months. With 18 or so months left of having the BK in your credit file, 6 months is not realistic. They may say otherwise, but don't expect a mortgage except at loan shark rates as long as the BK shows up. Some people will say it doesn't matter after 2 years, some will say 5 - my experienmce is if it shows up at all, it will be the deal breaker.

Not sure that all this info was really necessary to just introduce myself and to say thanks from the lurker who took her score from 497/501/527 a year ago to where it is now by slowly and surely following the advice offered in these forums. 

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Where you are now I was several years ago - as my sig line shows. FICO rewards revolving debt, not Installment debt. Don't let the term "credit mix" convince you that installment loans help - if they do their help is minimal. One $500 CL credit card used so that your reported balance is no more than 3% of your credit line will do a LOT more for your scores than an installment loan of any size will. Three such credit cards will be even better - but no more than one reports a balance in any month. I pay off all my credit card balances every Sunday on line, so that on Monday my Credit Card Util is 0% and on Saturday it is less than 3%.

[Anonymous]

With 18 or so months left of having the BK in your credit file, 6 months is not realistic. They may say otherwise, but don't expect a mortgage except at loan shark rates as long as the BK shows up. Some people will say it doesn't matter after 2 years, some will say 5 - my experienmce is if it shows up at all, it will be the deal breaker.

I am not sure if it's different in other states but in PA, bankruptcy hangs around for 10 years so I have about 4 years and some change before it goes away. My 6 month goal is a refinance on my car note- not a mortgage. Mortgage will come after I've made more impactful change to my score as I want to be able to maximize my investment by paying less in interest. By the time my bankruptcy falls off the older installment loans in good standing will as well, I was just mentioning them as a part of my overall credit picture. As if you say, I am not a complete failure. I've managed credit well before. Even once upon a time had neared the coveted 800 club, but then life happened and I did what I could but I wasn't as smart as I should have been.

and that's why I'm here.... to learn how to be smarter. 

[Credit4Growth]

It is a good thing that you have the CCs.  As you mentioned, the older - in good standing loans will age off along with the BK, but you will also have those older student loans you are rehabbing and a car loan on you report.  Keep working your plan👍 and keep learning.  

When the rehab is complete you will have a choice to keep those older individual trade lines or consolidated they.  Give this substantial thought while continuing your plans. 

Keep an eye out for the completion of the rehab and call to verify and re-verify if there is/will be a change in servicer of the loans and where to send payment.  Down let any third party allow you to fall through the cracks and cause a late payment to report.

 A BK in PA will.remain on the credit reports for 10 years.

* if you have not already done so, establish/reestablish a relationship with a finacial institution with which you may refinance the auto loan... on your timeline of course.

Welcome to the forums and good luck to you!