What is the best way to establish credit after a bankruptcy? It has been about 3 years since.?

Question

I've read about opening secured credit cards (pay $300 deposit on a $300 card)

This question is actually on behalf of my husband who's ex girlfriend charged up almost $50k in debt under his name. He has not opened ANYTHING in his name since the bk in 03-04. No house payments, credit cards, utilities, NOTHING.

He was going to file charges against his ex but he has a daughter with her and at the time, was in the process of getting visitation/child support situated. He did not want to add to the bad situation already. Looking back, he wishes he had filed charges... he may have actually won full custody that way.

Answer 1

Get 2 credit cards and use them for every day thing, never exceed 30% of your credit limit in any given month and pay them off in full before the due date.

I did this for 24-months and raised my score over 150-points.

You can also buy a car, nothing raises score faster then buying a car or a home and making 12-payments as agreed.

Do not bother with cell phones, checking accounts or savings accounts none of these are reported to the credit bureaus since they are not considered loans.

You should have started this as soon as your BK was discharged.

Answer 2

you have been given some good advice on rebuilding but I have a couple of questions on how your hubby got to this point.

did he hire an Atty and press charges against the ex? did he contest all these charges with the credit card companies as fraud?

IF and only IF he had NOTHING to do with these accounts, opening them or getting benefits from the purchases, then he should have fought that instead of declaring BK.

water under the bridge for you but for others coming along who might read this.

good luck and if possible it might be a good idea to see if you can switch the utilities to his name just to start establishing a credit line again though it might not exactly help with the credit. my area the utilities ARE reported to the Credit Bureaus but many do not.

orchard is a better card than some out there that he might apply for and get. he MAY only end up with a higher annual fee instead of all the other fees some companies add on to the account before he even recieved the card.

jackie and spif1man are right, keep those balances below 30% of the available credit

Answer 3

We are in the same boat Credit wise and this is my plan to
get out of this credit rut. One get your credit report and start writing letters to settle old debts and dispute charges you disagree with. Save some money. Find a bank that will open a Checking account for you. Try to get in a good bank that offers secured credit cards for example Wells Fargo Bank and U.S. Bank. After you've settled some old debts and have established both a current checking and savings account with a bank like the two I've mentioned apply for a secured credit card with the bank if they see you have active accounts with them and lets say your savings is about 1000.00 (One Thousand Dollars) Chunk that thousand into the secured card and don't mess up! keep the balance low and fully paid every month! over a period of time the reports will start rolling in for you and then I suggest you buy a used car or even a new one without the credit card and make your payments on time. Go on a consumers diet and buy only what you need for a while. Also after you build up you credit I suggest applying for credit union membership once you credit shapes up if the credit union offers you a checking account straight away that will mean your credit is headed in the right direction.

Answer 4

you could get a personal loan and pay it off in a few months that way you could buid good credit or you could get a credit card use it for everyday purchases and make the full payment at the end of the month that way you do not pay interest and build credit. Check out www.fastcreditcardapprovals.com here you will be able to compare all major credit cards side by side on rates, fees and reward, no matter what kind of credit you have they have the right card for you

Answer 5

From personal experience, prepaid credit cards are an EXCELLENT way to rebuild your credit.

I used a company (more than 10 years ago now) called First Consumers National Bank to get a prepaid Mastercard and Visa. Since I paid them on time, every time, they reported monthly to all three of the credit bureas (Experian, Equifax, and TransUnion), and before I knew it, I had a respectable credit score that garnered decent mail offers for unsecured credit cards.

I now have damned near perfect credit, and can walk into any dealership or bank and get an unsecured loan without EVER having a cosigner. I have all four major credit cards, a mortgage, student loans, and will never be turned down for a job because of having once had bad credit. I would definitely go with the secured credit card option, but BE VERY CAREFUL.

You will DEFINITELY want to do your homework about the company before you send them anything. There are companies out there that are scamming consumers by making false promises, then making off with your money once they have it in hand. If you find a company or two that seem like legitimate and respectable firms (the bigger the name, the better your chances will be), check out the Attorney General's web site for the state that company operates in. Also check the Better Business Bureau for any filed complaints. If any disputes have been issued against the company, these two places should have it listed - and that will be your "red flag" to avoid the company. Good Luck!

Answer 6

Get some credit accounts that will report to the major agencies and pay them like your life depends on it. Your best bets are major credit cards or a car loan- but verify that it will be reported to the agencies (Equifax, Experian) before you sign anything. If you get a car loan from a "Buy Here, Pay Here" place, they rarely report and it won't help you get reestablished.

One of the worst things you can do is to get a new account and then pay late. It will appear that you haven't "learned your lesson," so to speak.

Good luck.

Answer 7

Sorry but one of the dumbest things you could to to build credit is to get a charge card and "charge it up".

You want all balances on all cards to stay BELOW 30% of the credit limit at all times.

As others have stated whatever you do make those payments on time EVERY single month.

Good Luck

Answer 8

Rebuilding your credit is really easy. Read the article below to see how to get your score up in 30 days.

Also, try applying for a home loan or car loan. These are the easiest to get, even if you file bankruptcy, and it will help build your credit fastest.

Lastly, I would suggest opening an account at Bank of America. After a certain period of time, they will offer you a credit card and this will help you build your credit even faster.

Hope this helps.

Answer 9

I been through bk twice. If you have been making any payments on cards, homes or some kind of unsecured loan, then you have already reestablished your credit (if you are talking about something above 650 or so.

Check your credit score on line.

Answer 10

get a couple of credit cards with about a 300.00 max, charge them up and then pay the monthly payments on time.

You can also get a high interest car loan. Pay on time and after about a year you should be able to re-negotiate the loan for a lower interest rate.