I had to do bankruptcy after a car accident and being sued for $31,000. I'm only 24, live with my older sister and her family. I work part time and go to college, but I have no credit, no way of getting a roommate, and I'm just really messed up. I need to move out of my sister's house, and I need to have my own place someday, and a good job. I donno where to start, how to start and what to do. How can I get on my feet?
2007-05-13 21:28:00 · 6 answers · asked by timekiller 2 in Business & Finance ➔ Personal Finance
There are a few ways you can start rebuilding your credit after bankruptcy.
If you know someone (family member) that has great credit and will add you as an authorized user to one or more of their cards, that will give you a good jump start. Just make sure that the card(s) are in good standing - no late payments and low utilization.
I wouldn't recommend applying for a lot of cards in a short period of time.
If you cannot be added as an AU, you might start with a secured card, check with your bank or credit union to see what they offer. You might also check with one of the following - Bank of America, Orchard Bank or HSBC (but start with your own bank or credit union first)
Stay away from the super sub prime cards. With them you would be paying extremely high non refundable fees that would almost be as much as your credit limit.
Stay away from Cap One. They do not report credit limits, they only report high balances, so they would hurt you more than help you.
You might also apply for a store or gas card.
Keep your cards in good standing at all times. Keep your utilization low and pay them on time.(I'm sure you already realize that, but I just wanted to include it)
You might click on my profile and go to the last link I have listed. Do some reading in the credit forum.
While not everyone that posts in there has filed bankruptcy, there are quite a few threads where people talk about rebuilding their credit after bankruptcy.
They discuss, among many things, which creditors are or are not bankruptcy friendly.
2007-05-14 00:02:12 · answer #1 · answered by echo 7 · 1⤊ 1⤋
Just because your old dues have been cleared, it does not imply you go berserk with loan applications. Exercise restraint while getting new loans or credit cards. If you take it easy and make timely payments, credit repair after bankruptcy will far simpler. The key is to pay on time all throughout. This will smoothen the process of credit repair after bankruptcy. Of course, you will have to pay higher interest rates than you paid previously. The fact is credit repair after bankruptcy is a slow process and many lenders will consider you a risky applicant. However if you stick to this approach, you will get better credit later on.
http://get-out-of-the-debt-trap.com/category/Credit-Repair-After-Bankruptcy.html
2007-05-14 00:58:44 · answer #2 · answered by See Saw 3 · 1⤊ 0⤋
None of this stuff is fun. But it's not the end of the world. You still have your ability to earn. You can take care of these situations. I think you're a bit overwhelmed. That's understandable. You know what to do. Just do it man. Do the right thing every day and you'll always have a good day. Have you thought about working full time and going to school part-time? Just a thought. Keep your head up and you'll come out of this okay.
2007-05-13 22:06:33 · answer #3 · answered by Big R 6 · 0⤊ 0⤋
I found that the first thing to do is clean up your credit report with reliable credit solutions professional, this may cost you 300-400 dollars but beleive me it is worth every dime,there is a lot of time involved in getting your credit cleaned up so you have to be patient,next get a secured credit card for 300 and do not use more than 150,all this will work if you stick to it in about a year you see that you have again established good credit,without good credit you will forever be lost trust me
2007-05-13 21:42:53 · answer #4 · answered by monkey mind 1 · 0⤊ 1⤋
I would recommend that you visit this site:
http://www.lifeafterbankruptcy.com
This site is aimed at giving people who are trying to recover after bankruptcy some info and advice. There is a lot of free info, but they try to sell you on to their books and other stuff.....but the free info (and newsletters) are simply loaded with lots of good stuff.
Check it out! And this isn't a spam answer like many of the rest....if you read my past answers you will see I give links to where the info is. If it happens to be on a commercial site, oh well. I am not associated with any of these companies.
2007-05-14 04:16:18 · answer #5 · answered by Anonymous · 1⤊ 1⤋
Be calm; be logical; prioritize!
1) remain at your sister's home for now.
2) find your job.
3) pay bills on time.
4) later find a card, charge, pay off immediately.
5) do not take out any loan now - some may tell you that's your answer, yet you will more than complicate your present, dire situation.
Good Luck - and Patience, my Friend! Good things take time
2007-05-13 23:34:24 · answer #6 · answered by canyonview11 3 · 1⤊ 0⤋