Advice

[Middleswarth]

Hi Folks,

Looking to rebuild my credit.  Just checked and my FICO score is 634. 

I have a Chapter 13 BK that will be coming off my report in October. 

I have a recent auto loan for $15k (under $14k still owed) and no other outstanding credit. 

I have 5 or so paid loans from the previous 4.5 years.  I have one larger collection listed from 4.5 years ago ($700) and 3 others that are much smaller and much older (4-6 years, 2 less than $100, one $350).  My payment history has been perfect

Part of the problem with my low score is lack of credit cards.  My first question is does it make sense for me to try to get a CC now or wait until November when the BK is off my report.  As I have been reading, since the BK is almost 7 years ago, it probably won't increase my score as much anyway.

My goal is to increase my score enough to get a decent mortgage rate. I would like to buy in about a year to 18 months from now.

Thoughts?

Thanks.

[Booner72]

I would get a cc ASAP.  Try Orchard Bank as that is designed to be a rebuilder card.  If they say No, then go to your bank or credit union and get a secured card.

Also, if you can get family/friends to put u as an authorized user on their credit cards it could help a lot.  I did that w/ my husband about a month ago, he had no cc's himself, and his scores all shot up aprox 100 points!  We have a Ch 7 filed in 2005.

Good Luck!

[bruiseviolet]

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@Booner72 wrote:

I would get a cc ASAP.  Try Orchard Bank as that is designed to be a rebuilder card.  If they say No, then go to your bank or credit union and get a secured card.

Also, if you can get family/friends to put u as an authorized user on their credit cards it could help a lot.  I did that w/ my husband about a month ago, he had no cc's himself, and his scores all shot up aprox 100 points!  We have a Ch 7 filed in 2005.

Good Luck!

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wow almost 100 points?  That is AWESOME!

[Booner72]

It's true.  He was middle 500's and when the LO pulled his scores after the 2 AU's hit, he was sitting at 641, 67?, and 65? .  Since they're not my scores I don't know them off the top of my head but I have it at work if anyone really cares.

[Middleswarth]

Thanks for the reply.  I went ahead and got a Capital One No Hassle card.  Since I spend an obscene amount of money on gas each month I figured I could make the annual fee back in a few months (2% cash back on gas).

I figured I'll wait about 6 months and get another CC.  Then I can start working on the new house in the summer.

[Booner72]

It will be interesting to see your score once it starts reporting.  You should let us know 

[Middleswarth]

I will.  I want to check it again in November after the BK is removed.

BTW - I checked my Experien CR today (using the free annualreport) and it is already off there.