How to rebuild after chp 7

[CJIII1983]

How do you go about rebuilding your credit, I just for discharge from chapter 7 bankruptcy on 7/25/2019 I have two accounts that I affrimed a closed Visa Credit Card and my auto loan, I owe $841.70 on the credit card and $3,889.05 on my truck. I plan on opening a secured credit card next month, but my question is will my auto loan count as a secured loan?

[Anonymous]

Welcome!

A lot of us on here have gone through BK, some more recently than others. Right now the dust is still settling on your discharge, so it may take a few months to settle. Pull your credit reports and make sure everything is reporting correctly, ie accounts included in your BK are showing as included in BK, $0 balance.

IIWM, I would pay that CC balance down ASAP while at the same time banking as much cash as possible for the next 6 months, building up a savings.

Yes your car loan counts as a secured loan, so no need to get another loan. Take your time and choose cards that you will actually want and that can grow with you. Discover & Amex, if not IIBK, are great accounts to get that grow. GL2U!

[CJIII1983]

Yes I need to build a emergency fund up.

[Anonymous]

Agreed - 6 months of aggressively saving every penny possible before anything else. It’ll allow your reports to settle and without opening any new accounts (which are tough to do in the immediate aftermath anyhow) you won’t have money going out elsewhere. Live like a pauper for 6 months and save everything you can to get that emergency fund. Once you have it, forget it exists. Then you can start checking prequals for cards. One initially, and a minimum of 6 months before a second one. Rebuild slowly and methodically and in a year or two you’ll probably be surprised at the gains you make.

[CJIII1983]

Thanks guys, I will do that. I am thinking about going back to school.

[pizza1]

Can I ask why you re-affirmed a Credit card, and why the trustee even allowed this? Was that your only card in the BK?

[CJIII1983]

No it was not, I burned a few others.

[CJIII1983]

The credit union would not let me keep the car loan without keeping the credit card.