First Steps Post-BK

[GiveJoy]

I filed for Ch. 7 BK and it was discharged on 12-13-10. Now that I am past the discharge I was wondering if anyone has any advice as to what my next steps should be.

So far, I have joined myFICO and got my TransUnion and Equifax FICO scores. I also disputed my inaccurate identity information on my TransUnion report (they had a previous name listed that was NOT me and they had an incorrect birthday).

My husband and I are also in the process of refining a monthly budget for our personal finances. We are also selling anything we don't need and are using the money to give us an emergency fund of one months living expenses. Over time we plan on building this up to 3 months and then to 6 months.

So, what else should I be doing? Where do I go from here?

Thanks!

[Anonymous]

Nice work cutie-mama!

When you pulled your FICO scores, what factors were listed under "Helping Your FICO Score" and "Hurting Your FICO score"?  That's often a good outline for what steps to take next.

I really admire your focus on having an emergency fund.  For other folks reading this thread, even $500 to $1000 makes a huge difference. (See:  Why You Need $500 in the Bank).   And building it up as you move forward is savvy.  Being willing to sell stuff to get there is such a good move!

Congrats on your hard work and your so-smart focus as you move forward!

[MarineVietVet]

My advice? Just relax for a few months and don't even think about credit. You've earned a break.

Come here and read and ask questions for awhile before you start on your repair and rebuild  journey. Don't rush into anything.

Just my 2 cents.

From a BK years ago to:
EX - 9/09 pulled by lender 802, EQ - 10/10-813, TU - 10/10-774

"Some people spend an entire lifetime wondering if they've made a difference. The Marines don't have that problem".

[GiveJoy]

Thank You for the replies.

According to my credit reports the only thing helping my scores is my "Long account history" which goes back 14 years and 7 months with an average age of accounts of 6 years.

Is there anything else I could be doing to help me and my husband keep our finances in order besides living on our budget and putting money in an emergency fund?

In terms of my credit I do plan on just sitting back, paying down my student loans and letting my credit sit for a while. That's the only account I have left to pay on after the BK. I don't plan on obtaining any new credit for the time being. Although, the cc offers keep coming in the mail.

Thanks!

[Anonymous]

Great - it's nice that you have some history on your credit reports - that's a great help.

Now, what are the items listed under "Hurting Your FICO Score"?  That will help you know what to address next.

I think it's important to rebuild; so I'm a big fan of opening a bank or national cc at this point.  You'll gain quite a few FICO points, and you'll want that history to get started as soon as you feel you are ready.  I opened an Orchard card immediately after BK.  I never carried a balance - always PIF - and never paid interest.  I used it pretty much like a checking account - only items that were budgeted for were put on the card and then immediately paid for.

Rebuilding after BK is important - and it came in handy when we wanted to refinance our mortgage.  Without the effort of rebuilding our credit, we wouldn't have gotten a great rate - it was worth the little bit of effort.