I went thru Ch 7 BK, it was discharged a year ago. I am wanting to to a bunch of stuff, buy a house, a car, etc. But I am finding that the BK left a HUGE mess on my credit reports with ALL of the reporting agencies. What is the best way to clean and clear this up? Also, how can I INCREASE my credit score to get the best intrest rates possible? What sort of time period am I looking at needing to handle this?
2007-01-22 09:56:43 · 7 answers · asked by betron 1 in Business & Finance ➔ Credit
Mine was discharged in June of 2004, and right now my FICO score stands at 644, so there IS life after bankruptcy. I'm hoping it will increase to around 680 or so in a year....I have few revolving accounts that I am anal about paying on time and more than the minimum. My advice is to develop a budget that works for you, be accustomed to using cash - not credit, and SAVE. Once you've done that for a year or two, look into opening a credit card and use it WISELY. Capital One and Orchard Bank are good to rebuild. Now I have credit cards with Direct Merchant (13.9% APR) and Washington Mutual (9.9% APR). Direct Merchant gave me a line of $2800 and Washington Mutual of $4K.
2007-01-23 02:44:54 · answer #1 · answered by Neosamurai 1 · 0⤊ 0⤋
Bankruptcy stays 10 years on your credit report and there is nothing you can do to remove it . It took me 7 years to buy a car on my own and I have a high interest rate. I had to start rebuilding my credit slowly. You wont get anything fast with out either a cosigner with good credit or you can expect to pay high interest rates . I don't foresee you getting a house any time soon. Some car lots offer credit amnesty but depends on your job , how long you have been there and you can forget about the low interest financing . After 71/2 years my interest rate is still high even tho I have a decent credit score now .
2007-01-22 10:16:32 · answer #2 · answered by Cyndee 2 · 0⤊ 0⤋
It shouldn't have left a big mess on the credit reports. All those debts should show discharged in Bankruptcy.
That bankruptcy will stay on the report for 10 years, and it will have a huge effect on your ability to get credit.
Take this opportunity to start learning how to live within your means. Better yet, live beneath your means. Build up an emergency savings, because the credit cards are gone! Start saving for the car, and the down payment on the house.
As to start repairing your credit, I recommend finding and applying for a secured credit card. You pay them money in advance, and then charge. They give you a credit limit up to your deposit. Then make sure you pay off every single monthly cc bill, on time and in full. That will start providing a good payment history again.
Perhaps in 5 years, with good credit management, and a nice downpayment saved, you can get a house with a mortgage that isn't a rip off. Again, it's really really important that you start living beneath your means and saving money.
2007-01-22 10:12:53 · answer #3 · answered by Uncle Pennybags 7 · 0⤊ 0⤋
There are lots of ways to accomplish what you want but only 1 best way. If you have lots of time and persistence, you can take a stab at it yourself. I believe, however, that your credit is at least on the same level of importance as taxes (which most people have professionally completed). I know of a non-profit company that does all the leg work for you and hopes to improve your score 90 points in 90 days. Check out the credit repair link at www.totaldebtsolutionsllc.com
2007-01-22 11:09:19 · answer #4 · answered by CALIFORNIA GOLD 3 · 0⤊ 0⤋
You can do this, but it will take time and a bit of determination. If you are discharged you really should start to rebuild your credit in every way that you can. It pays to do your own research about this and avoid scams.
Here's a website with some useful background information for exactly your situation.
Good luck!
2007-01-22 10:23:09 · answer #5 · answered by Anonymous · 0⤊ 0⤋
Bankruptcy stays on your credit report for 10 years.
Creditors will start offering you credit soon, at exorbitant rates though, because they know you can't declare bankruptcy again any time soon and get out of your debts.
What are you doing though?? It sounds like you are jumping right back into the hole the bankruptcy dragged you out of. You should be getting your financial life in order, not going into debt again!
2007-01-22 10:03:32 · answer #6 · answered by Lisa A 7 · 0⤊ 0⤋
You have to build up your credit, and that takes time.
2007-01-22 10:06:23 · answer #7 · answered by xquis81 3 · 0⤊ 0⤋