Outline for Rebuilding Credit

[rodsren]

That happened to me once in the late 90's (I had a Member since date of 1982-I'm an old guy), but I had a payback plan with them in the 90's. Since then, I have not had a high income and have had to file ch13 twice (once in 2003, and once in April 2024). After 2003, they would only let me get as an additional user on a Shawbb Platinum card in 2015 that my sister was primarily on. Interestingly (at least to me), I just applied under my Florida address and middle name, and they actually ran my credit and came back right away (well, 30 minutes later) with the reason for the decline of "Bankruptcy." So maybe in August 2029, I might get it back in with Amex-I certainly have learned enough here about not needing to deal with CreditOne bank which is fake AMEX. AMEX did not sue me or my sister, although BofA did in my New York address, and the judgment became removable (Uncollectable) after 4 years per NYS law. JPMorgan Chase sued me and double (2 lawsuits x 2 cards) in California, as the amounts are almost identical for two lawsuits x 2 (or four judgments-and California law is only non-collectible after ten long years.) One needs to file a motion to discharge, usually notarized, with the courthouse (as they have little interest in clearing it up either the creditor or the court) and get a discharged judgment form from the clerk. You can send to these companies that feel they are doing a public service by tarnishing your name.- a lawsuit is an expensive & complicated process, I would forget about that.

[shipo]

Awesome! Thanks for the update. I guess I was fortunate when I joined I didn't live anywhere near a branch and was able to do it online; since our move our closest branch is a whopping 2.5 miles away, but I have yet to visit it.

[rodsren]

Good news. IN person NFCU approved my share and checking account. I can't do much with it in 30 days, but at least it's a start (previously, the online system declined me.). They did do a pull of my credit, and I think the guy noticed I had applied before (they seem to be very on the ball there.). But all was fine with a FICO (as opposed to non-useful vantage 3, which I learned on here also) of around 630. I'd recommend the in-person and hope you get someone helpful (my guy said when I was ready to do the SSL loan, email him directly, and he would take care of it.). RSR

[rodsren]

Dear Shipo:

Thank you. I was unaware they had so many branches compared with PenFed, which sailed through. I will be in Miami and in Los Angeles, so a trip to San Diego (with. limited access, I might get in or not) is kind of a trek. However, I have a doctor's appointment this Thursday in N. Miami, and they happen to have a location there. You can even make an appointment. Once again, thanks for your terrific advice. I'll let you know how it goes, you and others have mentioned both here and youtube that the NFCU limits are generous, which of course makes usage % lower and helps credit ratings, but that is far down the line. First, join and open checking and savings and possibly a small CD. Then, hopefully, come up with 5K in the USA, as that has been suggested as a good point for a secured card. As well as 3,001 in an SSL, which I still was unaware they existed. This website has been a very informative resource. Again, Gratitude for your help! Scott

[chb603]

NavyFed is our credit union so I was thrilled to read that they are so highly recommended. We switched to them from USAA pre filing as our attorney was concerned that our CC debt with USAA could jeopardize our banking relationship with them post petition. My only gripe about NFCU is that their mobile app and online banking aren’t feature rich so we’ve resorted to using Rocket Money for budgeting purposes. I hate that we can’t add pending manual charges in the NFCU mobile banking app- we were with USAA for over 10 years and their app was amazing.

[shipo]

Hi! I’m new here and approaching my ch13 discharge after nearly 5 long years on our payment plan- we did Ch13 to keep our house, financed with my VA loan in 2017. When you say wait 61M for Amex assuming you Britney them for under $10k, is that from discharge or date of filing? Thanks!

Filing date. In your case, unless you absolutely need an AMEX, I'd A) wait until you've reestablished credit with a handful of other financial institutions, and B) wait until your Chapter 13 falls off your credit reports (in about two years), before applying to AMEX. The good news is if you feel the need to apply sooner, AMEX has an instant internal review process which will decline your application immediately without a hard pull against your credit. As good as that is (from a bizarre perspective), I think poking the bear to let them know you're nosing around for a new card isn't always wise.

Congratulations on nearing the end of your Chapter 13 experience and please keep us posted on your recovery journey.

Edit: One other thought, given you have a VA loan I presume that also means you are eligible to join NFCU; if that's the case, I would recommend they be your absolute first stop when it comes to new credit.

[justbroke]

Hi! I’m new here and approaching my ch13 discharge after nearly 5 long years on our payment plan- we did Ch13 to keep our house, financed with my VA loan in 2017. When you say wait 61M for Amex assuming you Britney them for under $10k, is that from discharge or date of filing? Thanks!

There is no rhyme or reason as to how the American Express blacklist works. It is suggested to until 61 months after discharge since their system will show that date as possibly the last payment date. The only thing nice about the AMEX blacklist--if you can call it that--is you won't get dinged with a credit inquiry if you're on the black list. It will just immediately respond with something like "denied due to previous relationship" or prior account closure.

For me, I just kept trying and one day, they actually ran my credit. That when I knew that the blacklist was over. About 6 months later, I had an AMEX Platinum card and my Member Since date is still back in the 1980s!

[chb603]

Hi! I’m new here and approaching my ch13 discharge after nearly 5 long years on our payment plan- we did Ch13 to keep our house, financed with my VA loan in 2017. When you say wait 61M for Amex assuming you Britney them for under $10k, is that from discharge or date of filing? Thanks!

It has been nearly ten years since I filed my Chapter 13 and AMEX (as justbroke correctly stated has a very long memory) is still refusing me credit. Honestly I don't need or even want any additional credit, however, it would be nice to be able to get a Delta SkyMiles card (which I applied for a couple week back and they told me to get lost). Fortunately not all banks have held a bankruptcy against a former card holder; some times folks get back in, case in point, justbroke got back in with AMEX and I got back in with Chase. Speaking of Chase, since I can't get a Delta SkyMiles card, I was recently approved for a United Mileage Plus card, so it looks like I'll be flying United from here on in.

One final point about AMEX; I've read a number of anecdotal reports from folks who burned them for less than $10,000 who got approved 61 (or more) months after they filed. If you fall into the sub-ten-grand-burn category, wait five years plus a month and then reapply.

[rodsren]

A few comments:

• I have heard many financial institutions have an issue with off shore applicants, and while I haven't heard either way regarding NFCU, PenFed and others, it wouldn't surprise me to learn you need a domestic address to become approved for membership.
• Regarding high limits, NFCU is far more generous than PenFed; my PenFed limit is fixed at $6,000, my NFCU limit is $30,000.
• I would suggest next time you're in the States, stop into an NFCU branch and try and apply in person.

Dear Shipo:

Thank you. I was unaware they had so many branches compared with PenFed, which sailed through. I will be in Miami and in Los Angeles, so a trip to San Diego (with. limited access, I might get in or not) is kind of a trek. However, I have a doctor's appointment this Thursday in N. Miami, and they happen to have a location there. You can even make an appointment. Once again, thanks for your terrific advice. I'll let you know how it goes, you and others have mentioned both here and youtube that the NFCU limits are generous, which of course makes usage % lower and helps credit ratings, but that is far down the line. First, join and open checking and savings and possibly a small CD. Then, hopefully, come up with 5K in the USA, as that has been suggested as a good point for a secured card. As well as 3,001 in an SSL, which I still was unaware they existed. This website has been a very informative resource. Again, Gratitude for your help! Scott

[shipo]

A few comments:

• I have heard many financial institutions have an issue with off shore applicants, and while I haven't heard either way regarding NFCU, PenFed and others, it wouldn't surprise me to learn you need a domestic address to become approved for membership.
• Regarding high limits, NFCU is far more generous than PenFed; my PenFed limit is fixed at $6,000, my NFCU limit is $30,000.
• I would suggest next time you're in the States, stop into an NFCU branch and try and apply in person.

[rodsren]

rodsren, based upon your post I'd bet dollars to donuts you aren't comparing apples to apples regarding your scores. Said another way, my bet is your TU and EQ scores are Vantage 3.0 scores while your EX score is a true FICO 8 score; if you were to get your FICO 8 scores from the other two credit bureaus I strongly suspect they'd be very near the 618 scores you see from EX

I was. You are correct (apples and oranges, with the lower one for me at soon after discharge being the correct one, FICO8). NFCU declined my application, I don't know why. I sent a letter which was very polite, the DD-214, my birth certificate, a bank account and a copy of my recently renewed passport. I should be eligible (discharge was 7/29/24). I am n to asking for any credit products. T he one glitch: THIS MAY BE IMPORTANT: my mailing address is a private mail service. Also, Social Security (and I guess Medicare and IRS) have my Brazilian address. I didn't lie, I said my LA address was a mailing address. Now, I don't know if they have access to the Brazilian address, and I should say I am working on projects part-time here, but all mail (which means only the debit card-statements are all electronic these days) should go to LA, where I am at least every 6 months for several weeks. They said "Your application for membership has denied because we didn't receive the documents requested to verify your identity." "If you are still interested in joining, please submit a new application. You may be required to provide proof of address and identification." I don't know whether to go to the DMV in California and try to get a residential address (I believe at least Transunion has the address I use as "high potential fraud). Perhaps it's time for another mailing receiving service?

I am interested in joining as I hear about the high credit limits beyond Andrews FCU and Penn Fed and I feel irritated that my father served with an honorable discharge for 4 years in the Korean war and was recommended for re-inlistment on his DD214. Any advice? I hate asking friends for favors (and many don't want to receive debit cards at their addresses, but I think I need a real physical address on my CA ID/DL and maybe wait a couple of months to more? PenFed is already fundethe only one of the 3 that is open(, not with a lot but your several products (DC, Savings, Checking, $3,001 loan then payoff to $250) seems like a very good option. Is NAvy Federal a stickler about physical addresses-I know some banks are?

Thanks to all. Your advice and wisdom is greatly appreciated. Scott

[rodsren]

Thank you so much. Makes sense thought.

[shipo]

They publish Vantage because it is cheap.

[rodsren]

rodsren, based upon your post I'd bet dollars to donuts you aren't comparing apples to apples regarding your scores. Said another way, my bet is your TU and EQ scores are Vantage 3.0 scores while your EX score is a true FICO 8 score; if you were to get your FICO 8 scores from the other two credit bureaus I strongly suspect they'd be very near the 618 score you're seeing from EX

You are correct. I checked they are vantage three scores, not fico 8. Why do they even publish them if nobody uses them??

[shipo]

I would advise ignoring all credit card recommendations; they are nothing but paid for services which attempt to match your profile to a very high level model, and as often as not, they are wrong. As an example, they are constantly recommending AMEX cards to me, and yet, AMEX has me blacklisted for the indefinite future.