Life after BK

[Anonymous]

Ok, so it's been about 6 years since I filed for bankruptcy. Since then, I have been too scared to apply for credit cards, since that's what got me into my big mess, or any other type of credit. 

About 2 years ago I paid off my car, and racked up some serious student loan debt. I owe 42,000 for student loans. I haven't paid on any of it because I can't afford to do so at the moment.  

The issue: I have to build my credit back up so that when my car does die I can get a loan.

The problem: I can't get a credit card and I can't get a loan. I tried to get a loan through my bank but my debt-to-income ratio is uber high. I know what you're thinking.....I don't need a card or a loan but in all reality, I do so that I can build my credit again. My credit score is 679, even after my BK, but there is not a soul out there who will give me a line of credit. All I'm getting is tumbleweeds rolling by....

Does anyone out there have any advice on what I could do to build my credit? I can pass up the credit card because I really don't want one, but a loan from a bank for a car would be more appropriate.

Help?

[mauve]

Get a small secured CC. 

[LIGHTNIN]

Welcome to the forums,

Hi jennanjo, I would suggest joining a Credit Union, they have great rates on auto loans.

Also look into getting a secure CC, to help with rebuilding your credit.

Credit card center(blue tap at the top) maybe helpful in choosing a secure CC.

[alleycat1975]

Ditto on the Secured CC... 

Also if you find a Credit Union, sometimes they have Secured Loans.  You basically tell them how much and for how long and they set the money aside in a savings account but you can't access it until its paid in full..  And it reports to the credit bureaus.  My CU has one and alot of people use them for Christmas funds.

[mauve]

The reason I recommend a secured CC over a secured installment loan is that the secured CC will contribute to the revolving portion of the report - with no open revolving credit, OP is being penalized by not getting any points in a category that is 30% of her FICO. 

[alleycat1975]

Absolutely true..   In my case I had neither that were in a good way both installment and revolving.  Thats why i did what i did..  

[ScoreBooster]

---

@alleycat1975 wrote:

Ditto on the Secured CC... 

Also if you find a Credit Union, sometimes they have Secured Loans.  You basically tell them how much and for how long and they set the money aside in a savings account but you can't access it until its paid in full..  And it reports to the credit bureaus.  My CU has one and alot of people use them for Christmas funds.

---

I obtained a secured loan at my CU as well. The way they set it up was that I deposited the money into a savings account and received the same amount back into my checking the next business day. Every payment I make makes a part of the money in the savings available again - so I can actually get my monthly payment right back from the savings account.

A secured CC is not a bad idea either. Actually, I recommend getting both.

[Anonymous]

I was able to qualify for a small store credit card at Target about a year or two after my banruptcy. It's only been four years, and that small step has led me to a 670 credit score now, and I've qualified for two other credit cards and a mortgage (which I lost for unrelated reasons... I'm just glad I was laid off BEFORE closing, rather than after.)

[Anonymous]

I would really like to get a store cc but Walmart, Lowes, and Shell (gas card) all turned me down. 

I think I'll go with a secured cc and start from there. 

Thank you all for the advice and keep it coming if you have any further advice, I can use all the advice!

[Anonymous]

I think that stores have been a little more gunshy since the economy collapsed; I got mine before everything went down the toilet. 

Anyway, good luck with your efforts! As I can attest, there IS life after bankruptcy, and you don't have to wait until the bankruptcy expires!