What is the best way to repair credit after bankruptcy?
Kim K asked:
My bankruptcy was discharged in 2004 and I have not applied for a credit card until very recently (Secured Master Card with Capitol One).
My bankruptcy was discharged in 2004 and I have not applied for a credit card until very recently (Secured Master Card with Capitol One).
I am planning to buy a house in the near future, what are some good ways to build some serious credit fast!
I also have $5000 available to invest into savings, GIC’s etc.
Tags: Build Credit, Capitol One, Gic
April 16th, 2010 at 5:55 am
I would try to build up good credit with a local bank. By taking out smallish loans and paying them back. You can use the 5000 dollars as collateral.
April 18th, 2010 at 6:18 pm
Well you should have got that credit card back in 2004 when you BK discharged and you would not be asking this question.
It takes 24-months of good payment history to qualify for a F.H.A. loan after a bankruptcy.
The fastest way to build score is to get at least 1 more card and use them both for every day things and pay them off in full before the due date.
You can also take out a loan against your $5,000.00 and pay it back in 12-months just make sure that your bank reports to all of the credit bureaus first.
April 21st, 2010 at 10:51 pm
You have the answer- a secured Visa/Mastercard- Use no more than 30% of your limit- don’t pay late- pay more than minimum payment but don’t pay it off each month. After 6 months they will usually increase your limit. When paying rent- pay by check- the mortgage company is going to want proof of on time rent for 24 months. A handwritten receipt does not work (anyone can write their own receipt). FHA will also let you use non-traditional credit such as light bill- cable bill- etc if you don’t have enough credit. Just make sure you have at least a year of that (with everything in your name). Put the $5000.00 in savings now & keep it there. You will need 3.5% down for FHA. No bad credit allowed after the bankruptcy so make sure of that. Good luck! You will need a 620 credit score most likely.
April 24th, 2010 at 7:14 am
Never borrow money again and don’t worry about your credit anymore.