My No-Asset BK7 was filed in March 2017 and discharged in July 2017.
I want to rebuild and here are a few things I've learned in a few short months that might help others:
-Credit One, while not financially easily palatable, it will get you started on the road to establishing your new trade lines again during a time when very few will give you a chance.
-If you are NOT a member of a CREDIT UNION you NEED to be.
Do your homework, visit a branch and meet with someone to discuss your mistakes and the benefits of a CREDIT BUILDER LOAN.
This is another important trade line. I took out a $500 loan at their minimum $30 monthly payment. When it's paid off in about 17 months I'll renew a larger one and continue to build a positive relationship.
-DO NOT MAKE THE MISTAKE of interpreting a vague pre-approval or pre-qualification for a name-brand credit card as a GUARANTEE that you'll be getting that card when you get all blurry-eyed and apply for it!
This WILL result in wasted HARD PULLS on your already bruised and battered credit profile.
-Sit tight and TRY to be content with your less than desirable Credit One card while you establish some positive utilization and positive payment history.
-Remember that CREDIT UNION REPRESENTATIVE that understood your plight and awarded you with your CREDIT BUILDER LOAN?
That person is now your Friend, your Credit Confidant, your Mentor of Rebuilding; talk to him/her about their credit card offerings.
-A SECURED CARD with your credit union will be more reasonable in regard to APR and annual fees (if any) and will graduate quicker and easier to an UNSECURED CARD than other secured cards laden with rediculously high charges and fees.
-MOST IMPORTANT AND NOT TO BE IGNORED is you MUST put in the work required to CLEAN UP YOUR CREDIT PROFILES WITH ALL THREE CREDIT REPORTING AGENCIES!
Every debt that was discharged in your BK needs to show as:
-INCLUDED IN BANKRUPTCY.
-ZERO BALANCE.
-CURRENT (NOT "default/derogatory" status.)
Rebuilding is a MARATHON and NOT a 40-yard dash!
BE PATIENT and BE SMART!
"SMART" didn't get us into our situation but "SMART" will get us out!
In the 3 months since my discharge I've had 4 hard pulls on my credit; 3 that were beneficial and 1 that was IGNORANT WISHFUL THINKING!
THE GOOD:
1. I opened a PenFed account and they do a HP. I'm depositing $100 monthly into it with the long term goal of building a POSITIVE relationship with them and qualifying down the road for one of their credit offerings.
2. Credit One. I know; it hurts to even consider them BUT IT'S TEMPORARY. Remember you'll be closing that account before you are hit with their annual fee.
3. My secured card with Vantage West Credit Union. There was no HP for my Credit Builder loan with them but the card required one as their card offerings have several qualifying tiers and they require your credit score/credit review to determine their offering.
THE BAD:
1. I took a shot at Bank of America's secured card and was denied. It was simply too soon. I failed in being PATIENT.
I burned Capital One for 2 of their cards, Discover for 1, Amex for 1, Merrick for 1, and US Bank for 2.
I'm on their dreaded "BLACKLIST."
I KNOW that it will take TIME to get back in their good credit graces and I also know that I might NEVER be offered a piece of plastic with their brand on them ever again.
THAT'S MY FAULT and I accept 100% of the responsibility for where I find myself BUT to have Cap One, Amex and Discover in my wallet again IS MY GOAL.
In closing; know when to go into the garden.
You're looking at WEEDS in the beginning and the garden isn't a desirable destination RIGHT NOW but if you tend to it you'll be SMELLING ROSES in a couple of years!
Best of luck everyone and thanks to all on this forum who have been so helpful to me in this, the beginning of my rebuilding journey.
I want to rebuild and here are a few things I've learned in a few short months that might help others:
-Credit One, while not financially easily palatable, it will get you started on the road to establishing your new trade lines again during a time when very few will give you a chance.
-If you are NOT a member of a CREDIT UNION you NEED to be.
Do your homework, visit a branch and meet with someone to discuss your mistakes and the benefits of a CREDIT BUILDER LOAN.
This is another important trade line. I took out a $500 loan at their minimum $30 monthly payment. When it's paid off in about 17 months I'll renew a larger one and continue to build a positive relationship.
-DO NOT MAKE THE MISTAKE of interpreting a vague pre-approval or pre-qualification for a name-brand credit card as a GUARANTEE that you'll be getting that card when you get all blurry-eyed and apply for it!
This WILL result in wasted HARD PULLS on your already bruised and battered credit profile.
-Sit tight and TRY to be content with your less than desirable Credit One card while you establish some positive utilization and positive payment history.
-Remember that CREDIT UNION REPRESENTATIVE that understood your plight and awarded you with your CREDIT BUILDER LOAN?
That person is now your Friend, your Credit Confidant, your Mentor of Rebuilding; talk to him/her about their credit card offerings.
-A SECURED CARD with your credit union will be more reasonable in regard to APR and annual fees (if any) and will graduate quicker and easier to an UNSECURED CARD than other secured cards laden with rediculously high charges and fees.
-MOST IMPORTANT AND NOT TO BE IGNORED is you MUST put in the work required to CLEAN UP YOUR CREDIT PROFILES WITH ALL THREE CREDIT REPORTING AGENCIES!
Every debt that was discharged in your BK needs to show as:
-INCLUDED IN BANKRUPTCY.
-ZERO BALANCE.
-CURRENT (NOT "default/derogatory" status.)
Rebuilding is a MARATHON and NOT a 40-yard dash!
BE PATIENT and BE SMART!
"SMART" didn't get us into our situation but "SMART" will get us out!
In the 3 months since my discharge I've had 4 hard pulls on my credit; 3 that were beneficial and 1 that was IGNORANT WISHFUL THINKING!
THE GOOD:
1. I opened a PenFed account and they do a HP. I'm depositing $100 monthly into it with the long term goal of building a POSITIVE relationship with them and qualifying down the road for one of their credit offerings.
2. Credit One. I know; it hurts to even consider them BUT IT'S TEMPORARY. Remember you'll be closing that account before you are hit with their annual fee.
3. My secured card with Vantage West Credit Union. There was no HP for my Credit Builder loan with them but the card required one as their card offerings have several qualifying tiers and they require your credit score/credit review to determine their offering.
THE BAD:
1. I took a shot at Bank of America's secured card and was denied. It was simply too soon. I failed in being PATIENT.
I burned Capital One for 2 of their cards, Discover for 1, Amex for 1, Merrick for 1, and US Bank for 2.
I'm on their dreaded "BLACKLIST."
I KNOW that it will take TIME to get back in their good credit graces and I also know that I might NEVER be offered a piece of plastic with their brand on them ever again.
THAT'S MY FAULT and I accept 100% of the responsibility for where I find myself BUT to have Cap One, Amex and Discover in my wallet again IS MY GOAL.
In closing; know when to go into the garden.
You're looking at WEEDS in the beginning and the garden isn't a desirable destination RIGHT NOW but if you tend to it you'll be SMELLING ROSES in a couple of years!
Best of luck everyone and thanks to all on this forum who have been so helpful to me in this, the beginning of my rebuilding journey.
Capital One is one of the most forgiving banks.
I burned them and now have 3 large cards with them that pay me to use them.
Check Cap One prequal every few months - you might get suprised.
My first card out of BK was Cap One for $3,000, then another for 3,000 then 10,000 etc.
I have been loyal to Cap One and make large payments WEEKLY and they have rewarded we very well.
I never opened any credit building loans or secured credit cards.
I had a very extensive credit file before my BK including many credit cards.
Cap One, Merrick, and Barclay all gave me unsecured credit and treated me well considering my credit.
Hang in there.
