Comments on: My credit score 550, how do I make a year (post-bankruptcy) In addition to secured credit cards? http://www.financebis.com/20100723/my-credit-score-550-how-do-i-make-a-year-post-bankruptcy-in-addition-to-secured-credit-cards/ Financial Information Thu, 25 Aug 2011 17:43:20 +0000 hourly 1 http://wordpress.org/?v=3.3 By: SoCal Attorney http://www.financebis.com/20100723/my-credit-score-550-how-do-i-make-a-year-post-bankruptcy-in-addition-to-secured-credit-cards/#comment-110091 SoCal Attorney Fri, 23 Jul 2010 04:05:07 +0000 http://www.financebis.com/2010/07/23/my-credit-score-550-how-do-i-make-a-year-post-bankruptcy-in-addition-to-secured-credit-cards/#comment-110091 1. Consider opening a checking and savings account. Some lenders look at this to determine if you can responsibly handle money. Being able to pay bills from a checking account is also much more convenient than paying with money orders. 2. Consider applying for applying for store and gas credit cards for purchases for which you would normally pay cash. These cards usually have small limits and can help you restore you credit, but only if you have the discipline to set aside the money to pay the bill each month. 3. Consider applying for a secured card where you deposit cash and charge against it. If you borrow money for short periods of time and pay it back, this will reflect positively on your credit report. 4. You MUST pay your utility bills and rent on time for at least a year. 5. If possible, find a friend or relative to cosign for you on a loan and pay it on time. 6. Look for car dealers and mortgage brokers that attest to being "bankruptcy friendly". Buy a used car on credit so you do not get hit with the depreciation that occurs during the first two years of a new car purchase. 7. Stay away from payday loans that are at high interest rates and are a bad credit trap. 8. Write a letter to each credit reporting agency explaining the circumstances that lead to your bankruptcy filing. 9. Live within your means. Do not unnecessarily increase your debt-to-income ratio by taking on credit to purchase luxury items that you DO NOT NEED. Your payments on consumer debt should equal no more than 20% of your expendable income after costs for housing and a vehicle. 10. Pay your reaffirmed, pre-bankruptcy debts on time. 1. Consider opening a checking and savings account. Some lenders look at this to determine if you can responsibly handle money. Being able to pay bills from a checking account is also much more convenient than paying with money orders.

2. Consider applying for applying for store and gas credit cards for purchases for which you would normally pay cash. These cards usually have small limits and can help you restore you credit, but only if you have the discipline to set aside the money to pay the bill each month.

3. Consider applying for a secured card where you deposit cash and charge against it. If you borrow money for short periods of time and pay it back, this will reflect positively on your credit report.

4. You MUST pay your utility bills and rent on time for at least a year.

5. If possible, find a friend or relative to cosign for you on a loan and pay it on time.

6. Look for car dealers and mortgage brokers that attest to being “bankruptcy friendly”. Buy a used car on credit so you do not get hit with the depreciation that occurs during the first two years of a new car purchase.

7. Stay away from payday loans that are at high interest rates and are a bad credit trap.

8. Write a letter to each credit reporting agency explaining the circumstances that lead to your bankruptcy filing.

9. Live within your means. Do not unnecessarily increase your debt-to-income ratio by taking on credit to purchase luxury items that you DO NOT NEED. Your payments on consumer debt should equal no more than 20% of your expendable income after costs for housing and a vehicle.

10. Pay your reaffirmed, pre-bankruptcy debts on time.

]]> By: Mike A http://www.financebis.com/20100723/my-credit-score-550-how-do-i-make-a-year-post-bankruptcy-in-addition-to-secured-credit-cards/#comment-110090 Mike A Fri, 23 Jul 2010 03:40:07 +0000 http://www.financebis.com/2010/07/23/my-credit-score-550-how-do-i-make-a-year-post-bankruptcy-in-addition-to-secured-credit-cards/#comment-110090 I would do either a simple/affordable credit repair program and/or some tradeline program where you are added as an authorized user to an existing account with a perfect pay history, high limit, and low balance. You can easily raise your score in a short period of time. Good luck. I would do either a simple/affordable credit repair program and/or some tradeline program where you are added as an authorized user to an existing account with a perfect pay history, high limit, and low balance. You can easily raise your score in a short period of time. Good luck.

]]> By: SlimMick http://www.financebis.com/20100723/my-credit-score-550-how-do-i-make-a-year-post-bankruptcy-in-addition-to-secured-credit-cards/#comment-110089 SlimMick Fri, 23 Jul 2010 03:39:03 +0000 http://www.financebis.com/2010/07/23/my-credit-score-550-how-do-i-make-a-year-post-bankruptcy-in-addition-to-secured-credit-cards/#comment-110089 It's going to be rough for two years...as your credit score is most heavily weighted by what has occurred in the past 24 months...BK is a big hit...and your credit will be really bad for at least two years...Only the passing of time will correct this. After two years, you should start to see your credit go up...After 3 years...you could have good credit again...granted you stay out of financial trouble. A secured card will help...but only in the long term. It’s going to be rough for two years…as your credit score is most heavily weighted by what has occurred in the past 24 months…BK is a big hit…and your credit will be really bad for at least two years…Only the passing of time will correct this. After two years, you should start to see your credit go up…After 3 years…you could have good credit again…granted you stay out of financial trouble. A secured card will help…but only in the long term.

]]> By: Thomas http://www.financebis.com/20100723/my-credit-score-550-how-do-i-make-a-year-post-bankruptcy-in-addition-to-secured-credit-cards/#comment-110088 Thomas Fri, 23 Jul 2010 03:00:40 +0000 http://www.financebis.com/2010/07/23/my-credit-score-550-how-do-i-make-a-year-post-bankruptcy-in-addition-to-secured-credit-cards/#comment-110088 Bankruptcy will generally lower a credit score between 80- and 120 points and remains on your credit report for some 10 years. There are not a lot of options aside from secured cards. In truth - there are a number of bottom feeding lenders who actually seek out people who have declared bankruptcy knowing they can't file again and hence can virtually enslave them in credit deals where the terms are unreasonable and the interest rates and fees huge. They are gambling that you declared because you were not a good money manager adn you will get in trouble again and they will bleed you dry. Yup that is actually their business model - the scum of the earth in every way! If I were in your shoes I would worry more about remaining solvent and not needing to borrow money - it really is the ultimate revenge against creditors - learning to live without them! Bankruptcy will generally lower a credit score between 80- and 120 points and remains on your credit report for some 10 years. There are not a lot of options aside from secured cards.

In truth – there are a number of bottom feeding lenders who actually seek out people who have declared bankruptcy knowing they can’t file again and hence can virtually enslave them in credit deals where the terms are unreasonable and the interest rates and fees huge. They are gambling that you declared because you were not a good money manager adn you will get in trouble again and they will bleed you dry. Yup that is actually their business model – the scum of the earth in every way!

If I were in your shoes I would worry more about remaining solvent and not needing to borrow money – it really is the ultimate revenge against creditors – learning to live without them!

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