Bankruptcy

[Ms_Pooka]

hello! I have been lurking around for a while, you guys have great information. My question is about buying a home. MY BK chapter 7 was discharged October 2011, I am one year out and have the following:

Cap1  with $500 CL (started October 2011)

Cap1 car loan for 10k (started June 2012)

and just recently I applied for and was approved for two more cards

Cap1 rewards $1000 CL (Oct 2012)

Credit1  CL $300

My question is, do I need any more credit? I know I need to keep my total usage under 10%, but is the 1800 plus the car loan enough to show that I can manage it? My goal is to buy a home next October at the end of my two years post discharge....

[Elcid89]

You should be fine. You have demonstrated revolving and installment loans, and a comfortable number of trade lines.

Just keep your utilization below 20% (maximum ...) and PIF each month if possible. Religiously, and I do mean religiously, make your payments on time.

3 to 6 months (6 months is ideal) out from your planned mortgage application date, stop applying for new credit. You want the mortgage lender to see established lines with a healthy payment history and low utilization, along with low to no inquiries for the 6 months preceding the app.

Do that and your chances of being approved will increase. Just don't get discouraged if lenders decline to buy the mortgage. a BK is toxic, and that may slot you into less than prime lenders & rates, but anything can be done with enough work and diligence. Just stick with this and live the lesson that it teaches about managing debt.

[Ms_Pooka]

Thank you! I think since I have those three cards, I am done applying for anything. Im praying for that last 70 points to come over the next year with good payments and low utilization. I appreciate the advice.