I'm a 24 year old male. I have two a bad credit history. I have late payments, two repo's, and a bankruptcy. My bankruptcy cleared everything. Now I'm debt free, except for a 16,000 dollar auto loan balance. I was approved for my auto loan right after my bankruptcy was approved. I am making my monthly payments on time. What else do I have to do to boost my credit score, and get back on the right track. I want to buy income properties someday, and will need to have good credit. Any tips?
2007-03-12 19:46:37 · 6 answers · asked by superlacop 1 in Business & Finance ➔ Credit
First, don't miss any auto payments. Second, you might think of getting a "Secured" credit card. That's a credit card that you must put a deposit on. Meaning if you put a $1,000 dollar deposit down, you get $1,000 worth of credit. That way the credit company won't lose any money on you. I'm guessing that would be the only type of card you would qualify for. Using this card, (maintain a positive balance on it, don't max it out) and staying current on your auto loan will help restore your credit. It's going to take some time. The repos and bankruptcy will be on your record for years, but what's done can't be undone. The important thing is to start practicing more responsible financial habits now that will boost your credit rating/score in the long run.
One more thing. A good rule of thumb is to NEVER charge more on a card then you can afford to pay in cash. That way you won't dig yourself into another hole.
2007-03-12 20:04:47 · answer #1 · answered by asyland 3 · 0⤊ 0⤋
You should get two or three major cards and a couple store cards.
Keep the cards in good shape, low utilization and no lates. Use them only for small purchases (once every 6 months or so) and pay in full.
If you find that you are using the cards to much, get a drawer at the bank and put them in there.
Use the credit cards as a tool to get you to where you want to be and not for impulse purchases. Everytime you want to use them for an impulse purchase - think about the income properties first, then decide if you actually want to make that purchase with a card.
2007-03-13 04:04:04 · answer #2 · answered by echo 7 · 0⤊ 1⤋
From past experience with myself, I would get 2 credit cards and keep your balance low and make on-time monthly payments. This will increase your credit score. Also, you might want to know that you can get a mortgage loan too after one year after bankruptcy.
A site at http://www.bad-credit-credit-card-for-people-with-bad-credit.info/ has a list of credit card companies that give credit cards to people with bad or no credit.
2007-03-13 08:58:15 · answer #3 · answered by Anonymous · 0⤊ 0⤋
Payoff or settle for less with your creditors. Then go to your local bank and open a credit card secured with money and start paying your bills on time. Charge stuff you wouldn't normally pay cash with and make sure you pay that credit card off each month.
2007-03-13 03:04:03 · answer #4 · answered by Hiddendepths 1 · 0⤊ 0⤋
In your situation you can just be very patient and pay your bills on time and wait for your credit to go up and at the same time save up money in a savings account. If you want you can invest same money that you've saved so it can benefit you later down the road.
2007-03-13 02:58:36 · answer #5 · answered by ** StAr_BaBy ** 2 · 0⤊ 0⤋
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2007-03-13 04:26:41 · answer #6 · answered by Anonymous · 0⤊ 0⤋