How do I rebuild my credit after filing chapter 7 bankruptcy?
I filed Chapter 7 bankruptcy and it has been discharged for 30 days. I am trying to rebuild my credit but am looking for any good ideas or advice on how to do this properly. any suggestions and ideas would be appreciated.
Start with a secured credit card.
You will have to start rebuilding your credit rating with secured credit. Make sure the banks report to the credit bureaus, otherwise it does no good.
Go to the bank you do business with, ask them if they have a secured credit card, if they do open a new account with $300 – $500 tell them you want a secured credit card against that account. Use the card for small purchases like gas or food and pay the card off entirely each month on time.
Also you can take your savings account and save until you have $1,000. Tell your banker you want to take a installment loan out against the savings account. Take the money you receive and put it in your checking account to repay the loan. Pay it off in 12 months. Lenders like to see a mixture of credit, revolving, installments, personal loans.
After a few months you can try for an unsecured card again. Retail store cards and gas cards are normally easier to get.
It takes 24 months of consistent on time payments to re-establish a good credit rating.
I think you should ask yourself whether or not borrowing money is a good thing. Remember, your FICO score is simply a measure at how good you are at borrowing money. and since you've file Chapter 7, I'm going to assume that debt has not been your friend. I'd spend more time worrying about living within your means for the next seven to ten years rather than pumping up your score.
If you are concerned about the FICO number, just be on your best behavior for the next years and don't borrow any money. At least until the bankruptcy comes off in seven years, nothing you can do will overcome the damage that it will do to your score.
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