Advice for rebuilding credit after chapter 7 bankruptcy

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2 posts
cchelp
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Joined: Tue Apr 24, 2012 11:46 am
Location: NY

Advice for rebuilding credit after chapter 7 bankruptcy

Postby cchelp » Mon May 07, 2012 11:51 am

I am in need of advice on building my credit. I'll try to keep it short and to the point.

  • 7/2010 Chapter 7 Bankruptcy
  • 9/2011 Approved for HSBC Plaitnum Master Card $300 Limit $75 Annual Fee
  • 5/2012 Approval of Limit Increase to $400.
Note: I have a Chase checking account.

I had an option to go with a secured credit card but, thought it would be better to get an actual credit card although there's an Annual Fee. That was also the best one I got in the mail. I am also a verified 2nd user on my Fiances Capital One Venture Visa Card $3,000 Limit. I have a card with my name on it. I doubt that helps me.

I need help on how to improve my situation. Should I cancel with HSBC and go with a secured card from capital one? HSBC I'm sure would waive the annual fee every year but, that's more hassle for me. Should I cancel with HSBC and go with the Capital One Cash Rewards Card (if I get approved) at $39 annually?

I also do not know my current credit score. Last time I checked, over a year ago with freecreditreport.com it was around 550. Canceling my trial was a huge hassle.

Please help me =)

p.s. I completely Hate HSBC's website. It's a complete mess.


Crashem
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Joined: Fri Mar 09, 2012 9:29 am
Location: San Francisco, CA

Postby Crashem » Mon May 07, 2012 2:06 pm

After BK, you need to do two things:

1) Build up credit as early as possible. Search on the board and other sources for BK friendly lenders. You ideally want 3 revolving credit lines. Doesn't matter if they are secured or not secured as long as they report to all 3 bureaus and don't say secured. Doesn't matter how bad or good the card is (although a recommend staying away from the really crappy cards with outrageous fees). Look at local and national credit unions. But get those 3 revolving credit lines. Later when your score goes up and you are further away from BK, you can replace these. Don't make the mistake of hanging out and waiting for your BK to get older. You will recover much faster getting credit lines and showing responsible use of them (either PIF or even before statement date).

2) You need to check your credit reports (use the annualcreditreport for free ones if you haven't). If money is tight, use creditkarma for TU and creditsesame for EX. They are like credit monitoring light. What you are looking for on your credit report is that all the old debt has been registered in the BK and therefore ignored as far as FICO is concerned. I have often heard of people having old BK related debts pop back up and things not being recorded correctly by CRAs.
Amex Centurion, Amex Platinum, Amex BCP 8k->24k (5/23/12), Amex TE 15k, Cap One 1.5% 15k->20k (8/7/13), CSP 25k, Chase Palladium 100k, Citibank AA 35k (AU), Firestone 1.8k->2.2k->2.4k (8/20/12), JFCU Jloc 30k, PenFed Plat Rewards 30k, SF Fire 30k, US Bank Cash+ 25k



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