I hope I am doing this right. I just wanted to update this thread/topic I started.
My Chapter 7 BK was discharged in 1/21/19. Previously, as I reported here, while awaiting discharge I was added as AU to a Capital One Platinum Card account with a $13k limit. This was mid October or close to it I believe. By today, this helped to increase my credit scores to an average of 636. A week or so after my discharge, I financed a car ($12k total) through Carvana with a 16% interest rate. I applied for an was approved for a Credit One card ($400) about two weeks ago. Today I applied for a Milestone Gold Mastercard and was approved with a $300 limit and today I also applied for a Capital One Platinum card and was approved instantly with a $1,500 limit. So in less than two months after discharge, I am on my way to a real rebuild. I think I should add that I never burned any credit cards in my BK. I have $2,700 in parent student loans that are current and that is it basically. I believe having the AU added to my credit history was a huge boost and help. I could be mistaken...
Just wanted to do another update:
During the Ch 7 BK after I was added as an AU my credit score went up. After my discharge on Jan. 21, 2019, with no open accounts or car loan (except Navient Student Loans that have always been current) my FICO scores went up and peaked at about (an average of) 655. In February and March I got the following credit cards:
Capitol One Platinum - $1500 CL
Milestone Gold Card - 500 CL
Credit One Card - 400 CL
Comenity Bank Cards:
Victoria's Secret - 250 CL (online app - checkout offer)
Torrid - 250 CL (instant qualify in store during purchase)
Overstock - 300 CL (online app - checkout offer)
Before I got the Comenity cards, I applied for Discover and was turned down. I was turned down by Capitol One initially due to having applied for a secured card last fall. I tried again et voila, I was approved. A few of the cards came due already and I paid down to under 25%. The rest are due (some have not been used) the first week of May 2019. It's all new credit so FICO went down, plus I have 12 inquiries from car loans and credit apps which is very bad. Lenders NO LIKEY!
I also got a car loan for a $12k car in February 2019.
My FICO has dipped down to average of 620. I will now wait at least 6 mos to apply for Discover again but nothing else for the next year, or I will have my mom put me on another card ($30 limit) as an AU to give me another boost.
Uh boy! TMI...LOL!
Dont forget that when you add AU reporting to your credit report, that automatically means that any score generated now is no longer representative of only an assessment of YOUR risk analysis.
While you may increase a credit score by addition of credit history of another, it is no longer an evaluation of your own history.
If a prospective creditor does a manual review as part of their evaluation process, they will see the inclusion of any AU account, which tells them that the score they are seeing is not limited to your personal history.
They can choose to discount or ignore any score that is not limited to your own history. Some mortgage lendors will, for example, require removal of any AU accounts as part of their loan underwriting process.
AU score boosts are most useful when you are applying for relatively low amounts of credit wherein the creditor does not do a detailed manual review, and thus is not aware that the score they are receiving may be artificially inflated based on good history or another consumer.
There is a difference between A score and YOUR score.......
Rather than add another AU account, I accepted an offer for a Capital One Quicksilver card and removed the AU account. I'm going it alone now. My FICO score decreased significantly, but I am confident that with on time payments, usage within 10% and my car loan aging, I will bounce back. I received an offer for the Aspire FCU Platinum Mastercard. I will follow-up with a new thread if I decide to take the offer, or perhaps add to an existing thread to share info on what was offered etc.