Rebuilding Your Credit

[bwflorida]

Background:
After a BK in 2009, we closed all our CC accounts, not realizing that would hurt our credit even more. . . so we're now in the process of applying for a secured credit card that we can use for small purchases, paying off the balance each month, in an attempt to improve our scores (EX 708, EQ 679, TU 668). We're hoping to refinance our house, and the mortgage lender told us if we get our scores a few points higher, we can get a lower interest rate.

Questions:
1) Because we're facing a must-have $1,300 car repair, would it help or hurt us to also get a regular CC with a $1,300 limit that we'd pay off in about 12 months?

2) If so, what CC would be a good choice for that repair?

3) Or is there another solution?

[Shogun]

A CC is definitely something you should have, revolving accounts are a necessity for your credit score.  However I do believe that an installment loan would be better suited in this case.  Unless you can get a CC with no interest for 12 months.