@bott6698 wrote:
Ok, I just had my Bankruptcy recently Discharged. Now what are the best steps to rebuilding my credit in the
fastest time. I would like to be able to buy a home within 2 years if it is at all possible and I would love to get
a rebuilding plan from the myfico family. Thanks for your help
You can search on these boards (and spend some time in the rebuilding forum) but the general recommendations are to get 1-3 credit cards. You may have to go the secured card route but Capitalone gave me an unsecured card two months after my discharge (I included two of their accounts in BK). Try to establish about 2-4 positive tradelines. I started with credit cards but added installmental loans (a car and furniture purchase) about three years after my BK was discharged.
Use your cards and pay your bill ON time. It is best to allow less than a 9% utilization report on one card while the other cards report a $0 balance. I didn't realize this earlier in my rebuilding process. I always paid my bill in full every month but had really high utilizations reported. To spell it out using an example, your bill may be due on the 12th of every month but your statement doesn't get cut (and reported to the CB) until the 20th of the month.. If you pay your bill in full on the 12th but continue to use your credit card, you will have a high utilization reported on the 20th. It is best not to use your CC until your statement cuts, or ensure your statement only reports less than a 9% utilization.
Minimize credit applications. Only apply for credit you need. In all reality, except you are buying a house or a car, you shouldn't really "need" credit. In most situations at least. This is a good time to build an emergency fund and start saving. It is always a good idea to use your credit card only for things you can afford to pay cash for.
Time is the healer of all credit mishaps. I was able to get my scores to about 660 with only one CC post BK. The most important thing for me was that I realized why I had credit difficulties and I am determined never to let that happen to me again.I am A LOT more proactive about my money.
Hang in there and stay strong. You can qualify for an FHA loan in 2 years if you keep the goal in sight. I'm currently almost 4 years post BK with a TU FICO of 730. If I can do it, anybody else can. BK gave you a fresh start, learn from your mistakes and forge ahead!
BK in January 2008---Barclay's Apple Financing Card ($10,000) --- Capital One Quicksilver ($13,000)--- Platinum Delta Skymiles ($35,000) --- GEMB CareCredit ($10,000) --- AUFCU ($10000)---Discover IT ($33,000)
Experian 835 Transunion 828-- August 2018
