Sharing 2 Years Post Ch 7 Discharge Update

[vet2019]

I read this forum endlessly before I filed and periodically during the rebuilding process, so I feel obligated to share my journey for the benefit of others. I filed CH7 about 2 years ago and burned BOA, USAA, AMEX, and a small CU.

Days after discharge, I got a secured Capitol One Credit Card. 2-4 weeks later I got a Credit One and Indigo Card. Over the course of a few months I got a credit card from a small credit union and Navy FCU.

Shy of 1 year post-discharge I got a new auto loan at 6.7% with Toyota Financial. I probably could refinance for a lower rate today, but then I lose the active account history on this account.

Recently approved for a $20,000 unsecured personal loan with PenFed at 9.9% which is pretty decent rate even before bankruptcy on an unsecured signature loan.

I have shopped around the credit market and opened and closed a handful of credit cards over the last 2 years. I have more inquiries than typical or recommended from shopping around, but they don't seem to be a big issue if you give it 3 months or so in between a 2 or 3 inquiries to show you aren't binging your way into debt. It seems most banks understand you have to shop around these days especially after bankruptcy.

Current Cards:
Discover $5,000
Capitol One Platinum $3,000
Small Local Credit Union $1,000
Capitol One Secured $800
Capitol One Wal-Mart $600
Target $500

I have used Credit Karma since I filed. Their recommendations have been on par as far as approval odds. They show I have several pre-approved offers now on loans and credit cards. Their site recommended some of the cards I have. Capital One and Discover have a pre-qualification application on their website using a soft pull versus hard pull.

Pre-filing I had endless stress expecting a very long road ahead. I am pretty happy with where I am today 2 years later. Although 2 years ago it seemed like today would never come. My scores seem to hover around high 600's to low 700's). I typically do not carry a balance on the credit cards. The one or two months I did, there was a substantial drop in my score, but it bounces right back the next month after paying.

If you are thinking about filing, have filed recently, or early in recovery....don't stress it. I wish I didn't stress it so much.

[justbroke]

Thanks for the update! Glad to see that things are working for you. Life after bankruptcy is possible!

[Ekop785]

Two years seems a long time. I am a renter stuck in my apartment and I hope I don't have to wait two years to move somewhere cheaper.

It is all relative to income - someone with a higher income is going to recover from a BK faster because they will have more offers and be more likely to be a approved for loans.

I think each BK recovery is very unique and mostly income based.

[shipo]

Two years seems a long time. I am a renter stuck in my apartment and I hope I don't have to wait two years to move somewhere cheaper.

It is all relative to income - someone with a higher income is going to recover from a BK faster because they will have more offers and be more likely to be a approved for loans.

I think each BK recovery is very unique and mostly income based.

Hmmm, I would argue income is fairly low on the scale of things which allow you to recover quickly from a bankruptcy. I've seen on this board and others, folks who've dialed their scores and credit limits up MUCH faster than me, even though I have what I'll describe as a "moderately high income" and even though the other folks I'm referring to make well under half what I make.

Once again, purely from my perspective, the only thing which my income allowed me to do relative to my recovery was to plunk down $5,000 on a high(ish) limit secured credit card; that single card, given it's relatively high limit, opened the doors for me to obtain two other unsecured cards. Even still, my total limit on my cards is only about $14,000, this after over 18-months; compare that with folks who make a quarter of my income and have managed to land over $50,000 in credit limits.

I know the above might sound like I'm complaining; trust me, I'm not, the amount of credit I have far outstrips my needs.

Regarding renting for two years, not such a long time; when my financial melt down happened a decade or so ago, my house had to go and I was ultimately forced to rent a small apartment in 2013, that was pretty much all I could afford as my debts were so high. In 2015, still in the same apartment, I filed for a Chapter 13, and now, in 2021 I'm still here; next year when the 2-year window following discharge passes, I'll be looking for a house to buy; I should easily pass the 9-year mark as a renter before I move. In the meantime, I'm socking money away as fast as I can with an eye to putting 20% down on the new house.