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By the way 660, is not a good FICO score. You'd be better off having a goal of 775+
I think it's perfectly reasonable for the OP to set an initial goal of 660 (Fair) after a bankruptcy. Once they hit that, 720 (Good) is the next goal, and ultimately 775 and up (Excellent).
...would I be turned down because of the Chapter 7 still being on record? I've seen landlords in the renting section of this forum say they don't rent to people who've had bankruptcy within a certain amount of years (maybe 5, can't remember).
As I mentioned previously, I saw a couple different FICO score charts, and for some FHA loans, I read 620 was the minimum required score, and Wells Fargo requires at least a 640, so coming here has blown my mind on what's considered an acceptable FICO score.
I know though that the standards stated here will worst-case be what's expected anywhere else (anything under 700 being absolutely detestable), so I do plan to aim for 700 at least. This isn't an unreachable goal for me-- it's more about how long it'd take me to get to 700. I'm currently just short of 620 FICO score, and this has only been going up since my discharge in late August (don't know what my FICO score was before then, I think 520???). I've been following the FICO utilization pie (or whatever it's called) to a tee, so I'll check my score next January and see where I'm at.
I'm mainly concerned w/ trying to secure a loan for relocation. Rough ballpark, I'd need no more than $2,500. Getting a house is my 2nd concern, but I'll have at least a 720 by the time I decide to look for a house. An apartment for now is just fine (even in a less than desirable area)
OP - keep in mind, Fair Isaac & Co developed the FICO models as bankruptcy indicators Lenders have "overlays" to the scoring models for the scenarios you have described.
you need credit cards, and you need to use them, but keep your utilization rate under 30%
Thanks. I'm hoping so, because as I've said, there are those landlords, house sellers and what not that see a bankruptcy and stop right there (from what I believe I've heard in the past, hope I heard wrong). In the renting forum, I even saw a landlord so generous enough to openly admit he/she negatively judges those that go through bankruptcy, as they're "taking the easy way out"-- or something like that
Thanks. I'm hoping so, because as I've said, there are those landlords, house sellers and what not that see a bankruptcy and stop right there (from what I believe I've heard in the past, hope I heard wrong). In the renting forum, I even saw a landlord so generous enough to openly admit he/she negatively judges those that go through bankruptcy, as they're "taking the easy way out"-- or something like that
Last piece of advice: Keep good records. Cancelled checks, money order copies for your rental history and any non traditional credit sources that may not report to bureaus. Have your own "credit" package together when seeking a rental / owner financing type deal. Don't be afraid to write explanation letters regarding your situation. Some of my best tenants have experienced previous challenges.
Bankruptcy stays on file for at least 7 years, so it's gonna take 7 years to raise my score at least 100 points from what you're saying
A chapter 7 bankruptcy stays on your credit report for 10 years, chapter 13 is 7 years.
It doesn't take that long after you've filed for your score to go up, assuming you are paying your bills on time, etc. If you are going to wait a couple of years, you should be fine. Some will question the bankruptcy, but if you've shown that you have been responsible since, many will be lenient.
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