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rebuilding credit after ch. 7 bankruptcy

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mikef95
New Member

rebuilding credit after ch. 7 bankruptcy

Hi all,

I filed for chapter 7 bankruptcy and was discharged in August 2020. I've been working on rebuilding my credit, and am wondering if I'm on the right track. Depending on which app I check, my scores seem to be around 695-705 (Credit Karma, etc). I have a Cap One quicksilver card with a cli of $5000, and a credit builder loan from DCU for $3000. I'm also an authorized user on several of my fiance's cards, which all have perfect payment history. On all cards we pay the statement balance in full to avoid interest. Most are below 10% usage. Would there be any benefit to getting more cards that are soly in my name rather than being an AU, or am I on the right track?

Thanks!

14 REPLIES 14
MileHigh96
Frequent Contributor

Re: rebuilding credit after ch. 7 bankruptcy

For the best scoring and path to rebuild, the ideal file starts with 3 revolving accounts and one loan. You have the loan and you have one card, so it would be advantageous for your rebuild to get 2 more cards that are in your name. The cards where you are an AU on aren't going to help rebuild your credit file.
BK7 discharged - 06JUL2021
Loans:

Revolving Accounts (in the order they were opened):

Closed accounts:
Message 2 of 15
mikef95
New Member

Re: rebuilding credit after ch. 7 bankruptcy

I didn't realize that being an AU didn't help the credit file, so I'm glad I started this thread!

I'm having a hard time getting approved for other cards, probably because the limits on my fiance's cards are generous and they don't want to extend more credit to me if I had to guess. 

Message 3 of 15
MileHigh96
Frequent Contributor

Re: rebuilding credit after ch. 7 bankruptcy

Also, the CK scores aren't really good for too much other than seeing immediate up and down changes because something happened to your credit file. The only ones that really matter as far as lenders go are the FICO scores.

Credit.com is offering a 7 day free trial of their premium Extra Credit service. If you sign up for that, you can check all your FICO scores from all three bureaus. I would suggest canceling before the 7 days are up though only because these kinds of services are on the pricey side for what you get. But, if you think it's worth it, then you can just keep it going, that's totally up to you. Smiley Happy
BK7 discharged - 06JUL2021
Loans:

Revolving Accounts (in the order they were opened):

Closed accounts:
Message 4 of 15
MileHigh96
Frequent Contributor

Re: rebuilding credit after ch. 7 bankruptcy


@mikef95 wrote:

I didn't realize that being an AU didn't help the credit file, so I'm glad I started this thread!

I'm having a hard time getting approved for other cards, probably because the limits on my fiance's cards are generous and they don't want to extend more credit to me if I had to guess. 


I'm not exactly sure how being an AU affects applying for credit in your own name, I'm sure there are others here that know much more about that than I do.  But I know for wanting to do a rebuild, you do need those 4 trade lines (3 cards, 1 loan) in your own name.

BK7 discharged - 06JUL2021
Loans:

Revolving Accounts (in the order they were opened):

Closed accounts:
Message 5 of 15
FireMedic1
Community Leader
Mega Contributor

Re: rebuilding credit after ch. 7 bankruptcy

Who got burned in your BK? This will help us lead you which way to go. Having a bunch of AU's doesnt do much good. Many lenders ignore AU accounts with internal scores and so on. You gotta prove yourself having your own cards as the primary.


Message 6 of 15
mikef95
New Member

Re: rebuilding credit after ch. 7 bankruptcy

Amex, Cap One, Chase, Discover, and Syncrony got burned in the bk. DCU provides my fico score monthly, and it shows 658.

Message 7 of 15
MileHigh96
Frequent Contributor

Re: rebuilding credit after ch. 7 bankruptcy

You aren't going to get premium cards, but you can get some that aren't half bad. I just checked and Mercury and Ollo are still invitation only. I got my invitation for Ollo from Credit Karma, and I got my invite for Mercury through Experian. You can set up a free account with Experian and they will give you your free FICO score from them plus you can get card offers from them as well. It's worth having the free account with them. So I would see if you can get an offer for either one of those. And if it doesn't show up right away, keep checking back because the offers come and go.

Mission Lane is accepting applications and they have a pre-qualify to see if you will be approved before they do a hard pull.

You can also try the Credit One pre-approval and see if they will give you one.

The Jasper card I have is invitation only (I believe that one came from Credit Karma too), but that one will let me refer people if you are interested in trying with them.

And lastly, I would recommend opening a savings account with PenFed and get the ball rolling with them. They are pretty lenient with people out of a BK 7. I opened my savings account with them 3 months after discharge and 4 months after discharge they approved me for one of their cards.

So there are quite a few options to pursue to get 2 more cards. Definitely check CK and Experian for invites, just stay away from the garbage cards and look for the ones like Ollo and Mercury. And then there is always the route of opening a secured card or two, but I would definitely look into unsecured first.
BK7 discharged - 06JUL2021
Loans:

Revolving Accounts (in the order they were opened):

Closed accounts:
Message 8 of 15
mikef95
New Member

Re: rebuilding credit after ch. 7 bankruptcy

Great info, thank you!

I had a credit one right after the bk discharge, but it had an annual fee, so I closed it after a year once I got approved for capital one. 

If you think Jasper is a relatively good card, I'll take the invite!

 

I forgot to include this in my original post, but I have the following cards:

Capital One $5k limit. This one is in my name, the rest are AU cards.

BOA $37k limit

Chase Amazon Visa $25k limit

BestBuy $4200 limit

Discover $6k limit

 

Message 9 of 15
mikef95
New Member

Re: rebuilding credit after ch. 7 bankruptcy

I also have a few student loans, but they are currently showing 0 due to the payment pause.

Message 10 of 15
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