credit score...and buying a house...after bankruptcy?

Question

okay, my hubby and i are currently awaiting d/c in our chap. 7 case. as of the day of filing my credit score was in the lower 600s and my hubby's in the low to mid 500s. Right now, we are concentrating on paying bills on time and trying to build our emergency fund.

How long does it take to rebuild your credit from this point? **thorough answers and helpful websites are helpful.***

*****Anybody with bad credit who has made thru to the low risk pile of good credit is welcome to answer as well.********

Answer 1

My husband and I also filed bankruptcy and shortly after it was over we got all kinds of credit card offers and magazines with lines of credit don't fall for them just throw them away. Wait one year after your final date and apply for one just one credit card with the lowest interest rate you can find. Charge one thing and only one thing a month on it and pay it off in the same month along with that and paying your bills on time for about a year then I would try and apply for a house loan but make sure you have a decent down payment at least 10% is what most places ask for.I know that 2 years seems like a long time but trust me the longer you can wait the better off you will be. The other thing you want to do is 6 months after you file check you credit with all the credit companies to make sure that everything that you filled is coming off and when its estimated that it will no longer appear on your credit score.I would also do this again at a year to make sure that all is in order.Good Luck and don't forget to be frugal!

Answer 2

There are several answers to each of your questions, and all are possibly correct. Or you pick the one you want.

You can apply for a mortgage right away, however the sooner you do, the higher the rate and more difficult it will be to find a lender.

With most government guaranteed mortgages,(FHA, VA, Fannie Mae, etc.) the rule of thumb is 2 years.

For conventional mortgages, 10% down is typically required. This will get you lower rates and the best deals.

Before you discard the conventional mortgage as taking too long, the bankruptcy stays on your report for 10 years. That will NOT impact 'secured' loans nearly as much as unsecured borrowing, such as credit cards. charge accounts.

With cars, and homes, the lender takes much less risk.

How long does it take to get back in the low risk category? A great deal longer than one expects. Another poster cautions you against the offers that come following Bk. She is correct, most will rip you off.
Bet bet is to start saving for the DP, IRA anything. Don't be in a rush, or you will pay through the nose.

Answer 3

Rebuilding credit after bankruptcy depends entirely how how you conduct your affairs after you get the discharge. I've post a link to an article on my blog about rebuilding your credit. Check out the link below.