What is the best and easiest way to rebuild credit after filing bankruptcy?

Question

I own my home and would like to sell in three years to buy another home!

Answer 1

I thought the others were giving pretty good advice until I saw umdanddvd's response and clicked on his link that he offers. It seems like a paradise of Bad credit, loans, credit cards, mortgages, etc. In other words a place for people with bad or no credit to go and get approved easily for these types of loans.
I would be very cautious when it comes to applying for so called "No credit check" or "Bad credit" loans. Any reputable lender such as the larger banks, would not lend so easily to someone that is considered a high credit risk like yourself. The ones that do, and do it without credit checks, usually do so with a price. You may have to pay annual fees, abusively high interest rates, etc.
As a former financial counselor, my advice is to go to your local bank, where you have your checking account for example and see if they have secured credit cards available to customers. This is part credit card part debit card. Basically you have an account tied to it where you make deposits like a debit card, but use it like a credit card. But isn't that a debit card you ask? Well technically it is, except it shows up on your credit report like a credit card. Therefore it's a good way to rebuild credit. It's great for students too, who have little or no credit.
But as with anything else there's the good the bad and the ugly. Make sure you shop around to try to get an account with the least amount of annual fees, etc. You can go to Bankrate.com for a list of secured credit issuers: http://www.bankrate.com/brm/rate/cc_ratehome.asp?web=brm&state=US&prodtype=cc&R1=1&card_type=Secured&card_class=All&max_recs=50 Good luck with your search! And good luck with your situation. Also check out the source link for Do's and Don'ts with secured credit cards.

Answer 2

Revolving credit is the best (and fastest) way to rebuild your credit. Try opening up one or two credit cards. Charge a little something each month, then pay it off every month. Of course, don't charge more than you can afford to pay each month. Also, charge just a couple hundred, then make monthly payments on time and pay it off. Then start again. It's really the easiest way.

Another way: try to get a small loan (like $1000 or so) from a bank. Make sure it's somewhere like a bank or credit union. Then take that money and open a savings account with it. Have your monthly payment drafted from that savings account every month, so you don't have to worry about being late. (you're paying back the loan with the money they gave you) It'll earn some interest while in savings, plus it will improve your credit. You'll have to pay a little interest out of your own pocket...but it'll be worth it in the end.

Three years from now when you want to buy a house, your credit will look much better.

Answer 3

Keep your house payments current. Don't incur any new debt. As long as your home mtg, taxes and insurance are paid on time you should be able to sell your home in three years. This will give your credit scoring time to recover from your bankruptcy!.

If this Bankruptcy was a Chap13 then that is a different story. The trustee will need to be notified of the sale and the proceeds of the house sale will be deemed the courts to pay off debts that were included in the 13.

Seek professional advise from your lawyer or realtor before you put that house up for sale.

Answer 4

get a small credit card, and pay it off at the end of each month. For instance. I have a small credit card with a balance of 400 i put my utlitiles bills on there and then i pay the card off at the end of each month. That way positive credit is build back up. I went from a 400 score to a mid 600 score in a matter of a few short months.

Answer 5

Start paying your bills on time every time. Maybe in three years you would be out of your bankruptcy and able to be even considerable for a mortgage company to look at your credit report.

Answer 6

Bankruptcy is in your credit report for ten years.

No lending institution will loan you money, knowing that you cannot budget your income.

Answer 7

use a credit repair kit
if you click on my pic to go to my profile you will find a bad credit link you can find it there
check it out for yourself hope this helps

Answer 8

Time is the only way. Plus never be late on anything.