Need after bankruptcy/credit help!

Ok, I've been asking some credit card questions lately and rebuilding credit. I'll just come out and say it since most of you have known about us struggling with our finances for years.

We filed bankruptcy almost 2 years ago. It's been about 1.5 years since it was finalized. I was ashamed of doing it. I really tried the best I could to pay our bills but we were just so far way in over our heads. I can tell everyone now, that I am not ashamed of it anymore because it was the best decision we have EVER made for our situation. We filed Chapter 7 and also gave up our house to the courts. I couldn't have been happier to do that!

So now, we are left with our credit scores, which I can tell you I haven't even looked at. I know they're probably as low as they possibly can be.

We are now at the point, well we should have started it sooner, that we need to rebuild our credit. A bank down here, (we're in NC) told me that we could buy another house 2 years after a bankruptcy with a hight interest rate of course, but it is possible. We are in no rush to buy another house at this point. I'm happy with where we are now. It's in a nice neighborhood and good schools for my kids. We are renting and fine with it for now at least. I would like to buy another house in a couple of year, maybe sooner if possible, we'll see.

We need the best way to rebuild our credit score. I REALLY don't want to open a credit card. It's been almost 2 years without them and their bills, lol.

If we need to get credit cards again, do we need to open 1 account with both our names or do we need to open 2 accounts separately? I wasn't sure if having my name on my DH card would help my score personally or not?

Any suggestions you have, they are more than welcomed!

Also, I posted this because I know there were a few people that were considering bankruptcy.

Thanks!

Re: Need after bankruptcy/credit help!

Here are great ways to build credit....

Debit cards with a visa logo. This builds credit like CRAZY. You are paying with cash but use of debit cards actually BUILD credit.

Look at your credit score. You may not be happy with what you see but check out each item on your credit report. Start cleaning up some of the things on there- accounts that were closed that still show outstanding, etc...

That's all I can think of right now... If I think of anything else, I'll let you know.

Re: Need after bankruptcy/credit help!

Re: Need after bankruptcy/credit help!

Just researched it and debit cards do NOT affect your credit at all. Anyone can get one, and its not paying back a debt, it's paying with your own cash.

Like i stated earlier, it seems a secured card is your best bet right now!! go to creditboards.net for help they are amazing!!

Re: Need after bankruptcy/credit help!

Thank you very much! I'll definitely look into the secured cards.

I'm just so nervous with the regular cc because I think you're suppose to leave a little balance on them and not pay them off every month. I'm just worried that if I do that, that it would just grow and grow and then we're s@rewed!

Re: Need after bankruptcy/credit help!

To build credit after bankruptcy you have to get a secured credit card OR take out a secured loan. (a loan against your own funds)

I don't think you would be able to get any other type of loan/card without having re-established credit.

I would suggest that you find yourself a good bank/credit union. I prefer credit unions myself. Establish a relationship with the people there, and they will guide you. Get to know the loan officers... Get a secured card for 6 months, then apply for a regular credit card. $500-$1000 limit, nothing crazy. If you are co-applicants on the card it will help both of your credit.

Be careful, don't go over 50% of your credit limit, make timely payments.

There is a difference between having a credit card and being in credit card debt. You need to have trade lines to re-establish yourself.

Honestly, it's more about learning how to manage your finances and live within you means than anything else. There is no shame in it, but you don't want to end up there again. So... baby steps.

Then in the future, I would say a year or so, you can look into getting a car loan or whatever. Again, you don't want your bills to exceed 30-40% of your income.

I wouldn't take any type of loan at a hiked up rate. That's dangerous. You don't want to rush into anything.

That's my advice anyway. It takes time.

Good Luck!

Message edited 3/16/2011 1:31:45 PM.

Re: Need after bankruptcy/credit help!

Orchard Bank credit card is what I used to help rebuild my credit after bankruptcy about 3 years ago.

They started me with a low balance and every 6 months ago they raise it by 200 dollars or so.

My credit is getting better because we needed a new car and I was able to get a loan in my name at a decent rate in Sept.

Re: Need after bankruptcy/credit help!

Get a standard credit card, the highest limit possible. Only put on there each month one or two charges to keep the account active, pay it off each month, etc. So only use your credit card to buy gas and pay for drycleaning, nothing else. Do this for several months until you know you are in control of doing this. Then you may add on one or two more monthly expenses, but nothing else. The goal is to use a card, show you can pay off the balance every month, and that the amount you charge is low compared to the limit.