I filed chap 7 in Nov 2004, was discharged in Feb 2005. How do i go about rebuilding my credit and raising my score. I would like to purchase a home soon. I have noticed that some of the creditors included in my BK are still reporting on my credit report or have just started reporting again. Can someone help me to improve my credit because my children deserve a home?
2006-08-17 05:03:22 · 10 answers · asked by curious1 2 in Business & Finance ➔ Credit
I went through that same issue with creditors continually trying to reassert themselves on my report after a Chapter 7. Dispute every last one of them with the reporting agencies stating, "Creditor was included in Chapter 7 bankruptcy." They will be removed.
As for rebuilding your credit, it will take time. I started with a secured credit card from Capital One (I'm not sure if they still have one). After time, they gave me a little credit that was unsecured, then removed the security and refunded my deposited with interest, and so on. It takes a while.
When you buy a house you will probably end up paying interest a point or two higher than average, but as you rebuild your credit, keep an eye out of refinancing opportunities because even with a BK, your score can still rise the longer you have credit account that are paid on time.
2006-08-17 05:13:53 · answer #1 · answered by misslabeled 7 · 2⤊ 0⤋
the first thing you need to do is send a letter of dispute along with the letter of bankruptcy discharge to the 3 credit bureaus because the companies that were included in your bankruptcy should not be reporting it again as if it is a new debt.Then look into getting a secured credit card and keep it for about six months and just buy little things at a time and pay them off so that way when the credit card reports to the credit bureaus it shows that you are paying on time. After the 6 months try applying for a unsecured credit card and go from there. If you do a little more research there are mortgage companies that can finance you for a loan even after you have a bankruptcy it will probably be at a higher interest rate but at least you will have a home that you could refinance after a year of two of paying the mortgage on time.
2006-08-17 12:21:39 · answer #2 · answered by divine diva 2 · 1⤊ 0⤋
Even though your bankruptcy was discharged, things on your credit report will stay there for the next 7 years. You should double-check on the things that your old creditors are reporting. If the info is not correct, you should write to the credit bureau to correct your credit report. You should always pay more than the minimum payment due on your credit cards each month, and always pay on time. Don't incur any new debt. Gradually, your credit score should improve.
2006-08-17 12:11:33 · answer #3 · answered by Anonymous · 0⤊ 0⤋
Bankruptcies can stay on a credit report up to 10 years.
The secured credit card is a good start. Use it to buy your gas only, and pay it off on time. This will help eventually.
The key to building good credit is DISCIPLINE. Discipline not only in paying credit bills, but also in limiting purchasing and lifestyle to that which your income supports.
2006-08-17 12:22:19 · answer #4 · answered by Jamestheflame 4 · 1⤊ 0⤋
Get a "secured credit card"
A secured card requires a cash collateral deposit that becomes the credit line for that account. For example, if you put $500 in the account; you can charge up to $500. You may be able to add to the deposit to add more credit, or sometimes a bank will reward you for good payment and add to your credit line without requesting additional deposits.
2006-08-18 16:32:05 · answer #5 · answered by jabropunter 2 · 0⤊ 0⤋
How to Clean Up Credit Report
http://www.debt-loan-refinance-mortgage-credit.com/category/How-to-Clean-Up-Credit-Report.html
Step-by-Step Credit Repair Guide
http://www.debt-loan-refinance-mortgage-credit.com/category/Step-by-Step-Credit-Repair-Guide.html
2006-08-18 09:51:48 · answer #6 · answered by Anonymous · 0⤊ 0⤋
Debt Consolidation - Get Out Of Debt
http://www.askaquery.com/Answers/qn1643.html
How to Hire a Debt Counselor?
http://www.askaquery.com/Answers/qn1584.html
What is Debt Relief?
http://www.askaquery.com/Answers/qn1583.html
Debt Management and Building Wealth
http://www.askaquery.com/Answers/qn1581
2006-08-17 12:47:10 · answer #7 · answered by curtain r 2 · 0⤊ 1⤋
I went Though same as you it takes time get a secured credit card try that for while
2006-08-20 23:07:42 · answer #8 · answered by pattibcacl 6 · 0⤊ 0⤋
try a secured loan, also speak with a financial counselor to get additional tips! good luck.
2006-08-17 18:28:31 · answer #9 · answered by KISH KISH 2 · 0⤊ 0⤋
read more tips and articles on debt/credit on this site
2006-08-17 13:12:42 · answer #10 · answered by Anonymous · 0⤊ 1⤋