Rebuilding credit after BK

[trwillia]

Hello all,

Thank you for taking time to read this and any help you can provide. I filed dor CH & BK in Oct 2018. It was discharged in Jan 2019. I have have got a couple of secured cc($200 limits on both) that I have been paying on time(Disc and Cap one) since I was discharged. I received my deposit back on the Discover card last year but did not recieve an increase. This year I was appoved for an Apple card ($500), Verizon Visa ($500), Sephora store card ($250). I am thankful for these but I am wanting to get Prime CC like Chase, Bof A etc but I I keep getting denied. I just called discover to see if I can at least get an increase to $500 and was denied. I have been paying my cards every month on time and I don't understand why I can't get approved for Prime cards with larger limits. It also seems to ve taking a long time for my sxore to increase even though I am paying everything on time and the CC balances in full.

Is there any advise for what I could be doing wrong?

[OmarGB9]

To be honest, your BK discharge is very recent. 2.5 years may seem like a long time, but in the credit world, it's not a long time at all. That, coupled with opening up several new accounts is what's keeping your scores down.

The only thing you can really do is just give yourself time. That will allow your BK to keep aging, allow the new account dings to fade, and allow you to build up more positive history. Just keep paying on time and in full.

[Jeffster1]

Based on my own experience, I would suggest trying for a couple secured cards with substantial deposits with Prime banks. I got my DC in January 2021 and within a couple months opened a secured card with a $5000 deposit at BofA and one for $1500 at TD Bank. I credit those with my progress since then. Both cards graduated a few months later. 

Within a couple days after DC, I had been approved for a $3000 Cap One Platinum and a $2000 OLLO. My current cards are in my signature. While some on here argue that creditors are agnostic as to whether a creditor on your reports is Prime or not, I just cannot help thinking a good, steady with BofA and TD helped me. Maybe not, but I don't know any other way tp explain it.

Mine was a 100 percent Chapter 13. I don't know if any of that helped. There are some on here Who said the 13 vs 7 made a difference, and the fact that it ended up being a 100 percent plan also didn't make a difference. (I paid 100 percent so I could get an early DC at 3.5 years.)

[FireMedic1]

Chase and BoA wont give you credit until the BK falls off. Chase wont even give you a Amazon card. Since you already have a secured Cap1 card. You could try for Cap1. One approved. Close out the secured. Takes time to get "prime" cards. Who got burned in your BK? That will really help.

[Suzette2]

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@trwillia wrote:

Hello all,

Thank you for taking time to read this and any help you can provide. I filed dor CH & BK in Oct 2018. It was discharged in Jan 2019. I have have got a couple of secured cc($200 limits on both) that I have been paying on time(Disc and Cap one) since I was discharged. I received my deposit back on the Discover card last year but did not recieve an increase. This year I was appoved for an Apple card ($500), Verizon Visa ($500), Sephora store card ($250). I am thankful for these but I am wanting to get Prime CC like Chase, Bof A etc but I I keep getting denied. I just called discover to see if I can at least get an increase to $500 and was denied. I have been paying my cards every month on time and I don't understand why I can't get approved for Prime cards with larger limits. It also seems to ve taking a long time for my sxore to increase even though I am paying everything on time and the CC balances in full.

Is there any advise for what I could be doing wrong?

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It's sounding like you're applying a lot.  How many inquiries do you have? If there are a lot (you said you keep getting denied) then they might think you're credit seeking off a fresh BK

[SUPERSQUID]

My bk7 was in 2019 also, december 2019. I started off with low limit unsecured cards and store cards.

BOA,WF,TRUIST,CHASE,CITI,AMEX etc wont touch me.

However a credit union is a good option.

I was able to join NFCU and Penfed and they treated me well so far, nice limits and reasonable interest.

If you can find a credit union you can join that might be a good route.

[tricie17]

I have found that having a very good establishment with banking (whether Credit Union or a Standard banking institution) weighs a lot in getting credit. Credit companies look into more than your scores when you are applying for their cards. Stay on your path however give what you have some time to marinate. Get into the FICO garden and have fun reading up on credit here. Store cards are good but you can use your credit card for those same purchases (too many are not helpful). Focus more on your savings rather than credit. After about Gardening for some time, start your journey again. Also try getting an Installment loan (secured) to help. Try reaching out to a Credit Union and apply there. You can also try the Self credit builder. You don't want to get too ahead of yourself.

[masscredit]

@Jeffster1  I went with four secured cards with substancial deposits. Three at prime banks (TD Bank, SDFCU and Andrews) and one fill in (Open Sky). That one and Open Sky won't graduate so they'll be replaced at some point. Also went with an SSL from Andrews. I started off with scores in the upper 400s to low 500s around the time I filed BK in March of this year. Started the rebuilding process just after the creditors meeting in May and just checked my EX score here to see that it's at 682. I check the other two the first week of the month. I'm expecting them to be in the 650 range. And that's not counting paying down my SSL to 67% last week. That will update in a few days.

My plan is to sit in the garden for awhile. Let the two cards gradaute then see what becomes available to me. I burned Cap1 pretty bad (more like a forest fire) but I hear they will let me in again so I'll be checking their pre-qualification page once in awhile. At this point, I'm just very happy to have decent scores two months after my DC. I read a lot of a thread about getting to 700 in two years. I don't know why my scores have increased this quick but I'm not complaining. 

[OmarGB9]

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@masscredit wrote:

@Jeffster1  I went with four secured cards with substancial deposits. Three at prime banks (TD Bank, SDFCU and Andrews) and one fill in (Open Sky). That one and Open Sky won't graduate so they'll be replaced at some point. Also went with an SSL from Andrews. I started off with scores in the upper 400s to low 500s around the time I filed BK in March of this year. Started the rebuilding process just after the creditors meeting in May and just checked my EX score here to see that it's at 682. I check the other two the first week of the month. I'm expecting them to be in the 650 range. And that's not counting paying down my SSL to 67% last week. That will update in a few days.

My plan is to sit in the garden for awhile. Let the two cards gradaute then see what becomes available to me. I burned Cap1 pretty bad (more like a forest fire) but I hear they will let me in again so I'll be checking their pre-qualification page once in awhile. At this point, I'm just very happy to have decent scores two months after my DC. I read a lot of a thread about getting to 700 in two years. I don't know why my scores have increased this quick but I'm not complaining. 

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@masscredit, just as an FYI, unfortunately paying down your SSL to 67% won't do much for you. Installment debt doesn't have the thresholds that revolving debt does. You'd only get a score boost when getting to under 9%

[masscredit]

@OmarGB9  I always thought it did. Hum... Something gave me a nice points increase right around the time that loan started reporting under 89% last month. I thought it was the SSL so I paid it down to what I thought would be the next level for a few more points then let it ride for two years.