Rebuilding, need advice.

[WD2005]

I'm 54 months into a Chapter 13 BK and have already jump started my rebuild but looking for some help. Namely, should I look to close my bad cards soon or would I better served holding on to them? My goal is to be in a position around the time of my discharge, say March-April of next year, to obtain an FHA loan. I know technically I could apply for one now but the plan payment would affect my DTI and once my plan is done in December, I will have no debt. 

My Fico 8 TU is 634 and EX is 630

My cards:

Navy Federal Secured 6/18 $500/$0

Discover IT 5/18 $800/$0

Ollo Platinum 5/18 $300/$0

Elan Local CU Secured 11/17 $300/$0

Credit One 11/17 $700/$413

Primor Green Dot Secured 3/16 $500/$0

Installment Accounts:

Credit Builder Loan Local CU $500/$250

Toyota Financial (Closed 6/12) One 30 day late 4/2012

Capital One Auto (Closed - IIB)

Baddies:

One 30 day late 4/2012 Toyota Financial

BK13 12/2013

I can have the Credit One card paid off in the next 2-3 weeks. I really only use the Discover card because of the cash back. The rest kinda sit there. The Navy Fed Secured is brand new. I sent a goodwill letter to Toyota but they wouldn't budge. Any advice for the next year would be appreciated. 

[gdale6]

I see no reason to rush to close a bunch of them. If the credit 1 is costing you money monthly then pay it off and close it out, if not keep till the next AF then cancel. You need to have one card report a small balance each month to help max your Fico and you need to maintain at minimum 3 open revolvers.

[WD2005]

That's kind of what I was thinking. The Green Dot secured comes up in March for its AF and Credit One is in November. I was thinking of closing both before the AF hits. That would leave NFCU secured, Discover It, local CU secured and Ollo Platinum. None of them have AF.

[dynamicvb]

Sounds like a good plan. once you get the BK13 to paid status, you should see a nice bump from it. At least that is what happened to me, but your scores are better than what mine was at the time as I did not do any credit while I was in repayment so YMMV.

[Anonymous]

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@WD2005 wrote:

I'm 54 months into a Chapter 13 BK and have already jump started my rebuild but looking for some help. Namely, should I look to close my bad cards soon or would I better served holding on to them? My goal is to be in a position around the time of my discharge, say March-April of next year, to obtain an FHA loan. I know technically I could apply for one now but the plan payment would affect my DTI and once my plan is done in December, I will have no debt. 

My Fico 8 TU is 634 and EX is 630

My cards:

Navy Federal Secured 6/18 $500/$0

Discover IT 5/18 $800/$0

Ollo Platinum 5/18 $300/$0

Elan Local CU Secured 11/17 $300/$0

Credit One 11/17 $700/$413

Primor Green Dot Secured 3/16 $500/$0

Installment Accounts:

Credit Builder Loan Local CU $500/$250

Toyota Financial (Closed 6/12) One 30 day late 4/2012

Capital One Auto (Closed - IIB)

Baddies:

One 30 day late 4/2012 Toyota Financial

BK13 12/2013

I can have the Credit One card paid off in the next 2-3 weeks. I really only use the Discover card because of the cash back. The rest kinda sit there. The Navy Fed Secured is brand new. I sent a goodwill letter to Toyota but they wouldn't budge. Any advice for the next year would be appreciated. 

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When were you or atleast try to get your secured Discover card? I am about 9 months in my BK13, and I still have yet to get a approved for the secured discover card. It keeps using my BK as a reason on WHY I am not being pre-approved. I haven't cold apped yet. Should I call the recon number? Am I even ABLE to recon a pre-approval decision? lol

[WD2005]

I don't have a secured Discover card. Its a regular Discover It. We're in two completely different places at this point and that is probably why. My BK13 was filed 12/13 while you're nearly 4 years later. That probably has something to do with it. Discover isn't a creditor in my case but Cap One is. They won't touch me right now. 

The story behind the Discover approval was I signed up for the scorecard and watched my score increase. Every now and then I'd try their prequalify site and give it a shot.  One day it gave me a thumbs up and I apped. Got approved right away. My score was 630. 

One update. Got the Credit One account paid to zero. Last statement reported a $61 balance with Discover but I PIF every week. Zeros across the board with the rest.

[Anonymous]

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@WD2005 wrote:

I don't have a secured Discover card. Its a regular Discover It. We're in two completely different places at this point and that is probably why. My BK13 was filed 12/13 while you're nearly 4 years later. That probably has something to do with it. Discover isn't a creditor in my case but Cap One is. They won't touch me right now. 

The story behind the Discover approval was I signed up for the scorecard and watched my score increase. Every now and then I'd try their prequalify site and give it a shot.  One day it gave me a thumbs up and I apped. Got approved right away. My score was 630. 

One update. Got the Credit One account paid to zero. Last statement reported a $61 balance with Discover but I PIF every week. Zeros across the board with the rest.

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I see, so basically time and score is a factor, not necessarily the back that I have a BK on my file. I appreciate the info, thanks. I know you can't wait until you discharge, almost there!

[WD2005]

You're so early into your plan that I would concentrate on building a savings account and gardening the cards you have. I didn't bother looking at my credit til about 2 years ago. Five years is a looooooong time. Getting that plan paid off is the most important thing. Payment 55 just went out through TFS last week so only 5 more to go.

[jim44]

You may consider and YMMV calling your AF cards just prior to the AF month and request that they wave it.  I was successful with BoA. I would be humble and not threaten to close if they considered refusing.  JMHO.  These cards do have an effect on you AoA. 

[Anonymous]

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@jim44 wrote:

You may consider and YMMV calling your AF cards just prior to the AF month and request that they wave it.  I was successful with BoA. I would be humble and not threaten to close if they considered refusing.  JMHO.  These cards do have an effect on you AoA. 

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Thats not a bad idea Jim, I am going to try that when I get close to my one year, thank you for the advice.