Whats Better To Re-establish Credit With........

ibwats profile photo

i have heard mixed things.......i plan on trying to buy a house a year after my bk...is it better to re establish with a car or credit card

Comments(5)

  • webuyproperties4th March, 2004

    After your BK, do you have any current installment loans? A history of paying an installment loan on time is a good thing.
    Why do you have to choose? Can you not get a secured credit card? If you do, get it, charge something, pay above the minimum and then the next month pay it off. Keep it at a zero balance. Your credit report will then show your high revolving balance and that you owe zero.
    Of course, the best way to build your credit is to pay everything on time, and do not over extend yourself...
    Good luck

  • ibwats4th March, 2004

    in my bk i gave up all instalment loans therefore i have no installment loans now.......i have been told that it is better to restablish with a major purchase instead of a credit card...just looking for the smarter move now that i have no loans to pay on and know way to increase credit score.....thanks for the advice

  • flacorps5th March, 2004

    You want a good mix. You want to get as much as you can, and use it all just a little. Chevron can be a good place to start. If they decline you, they typically offer you the "rebuilder" card.

  • diatribe5th March, 2004

    Hello ibwats,

    I believe that while you are trying to rebuild credit, you should try to get your BK discharged as soon as you can. Each plan is different of course, when I was in BK I had to pay $50 a month for 5 years. When I had to refinance my home that I bought privately, I had to discharge my BK and they allowed me to follow through on the refinance.

    This may or may not be possible for you since I don't know your financial situation, however, it should be much better now that you are out from under most if not all of your payments and debt.

    Of course, rebuilding your credit is important using credit cards and the such, but just as important is how far away you are from your BK being discharged.

    If its any inspiration, my last remaining trace of my BK dropped off my reports yesterday. Its been a long 7 years and have been discharged for 3. Since my BK though, I have a perfect payment history. Recovery from BK takes time.

    Also, check into No Doc Loans as they are generally secured by the property and not your credit. Check out all the posts in the other forums about seller financing and other ways to make money from properties. Even a little bit of your own money now can be turned into a nice chunk of change where you may be able to live "outside" the system for a while.

    Check out www.Creditboards.com for more information on credit repair and read every post on this website. The two best sites on the Internet.

    Good Luck to you.

  • ibwats5th March, 2004

    fyi....my bk was chapter 7 and already discharged.. thanks for the advice

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