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What are my next steps to rebuild my credit after receiving my discharge papers?

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Member

What are my next steps to rebuild my credit after receiving my discharge papers?

Hello,

My husband and I recently had to file Chapter 7 5/09 and received our discharge papers 8/09. I'm very anxious in rebuilding my credit and moving forward. I'm confused on what we should do, so can you please give me some proactive steps in helping me rebuild my credit so that we can move forward with our future. Thanks.

Message 1 of 7
6 REPLIES 6
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Valued Member

Re: What are my next steps to rebuild my credit after receiving my discharge papers?

I filled chapter 7 in 12-2008 and it was discharged 3-2009. In May I applied for an orchard card got approved for $300, and in June I applied for a Capital One and got approved for $300. I have been paying on time. one time I had a 0% utilization and another time I had a 50% utilization. My credit score is 637 for Equifax and 609 for Transunion. I also have student loans that's deferred and a car loan that I kept and is still paying it on time, so I don't know if thoes 2 (student loan and car loan) is the reason why my scores are what they are. Good Luck!
Message 2 of 7
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Regular Contributor

Re: What are my next steps to rebuild my credit after receiving my discharge papers?

Also, after about 90 days from discharge, pull all 3 CRs and make sure that they are reporting as $0 balance, and 'included in bk' not charged off or anything else. Anything that was included that does not say that, you must dispute. Make sure you keep a paper trail of disputes in case you need to fight harder. Like the other post says, get a couple small CCs (even if it means getting secured) and use them for gas, pay them in full every month. Apply for things sparingly.  Keep your util low and pay early and always on time.  OH and patience helps too.

 

We gave up the fight and filed BK in 2010. Smiley Sad
Message 3 of 7
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New Member

Re: What are my next steps to rebuild my credit after receiving my discharge papers?

I'm new at this also.  My BK, Chapter 7 was discharged Nov 2008.  I have one CC with a $500.00 limit.  Is it really better to pay the whole balance each month?  I heard to pay more then the minimum.

 

Also, what other cards should I apply for?  I know not many CC are opening new credit to people that have a BK.

 

Please help..I'm lost on what to do!

 

Thanks!

 

Message 4 of 7
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Contributor

Re: What are my next steps to rebuild my credit after receiving my discharge papers?

Iceboxgirl,

 

From what I have read in these forums, it is best to keep utilization under 10% of your credit limit. On your $500 card you don't want to keep more than a $50 balance. This will help your FICO score.

 

My BK7 was discharged in Sept or Oct of 2007. As of this date I only have an Orchard Bank secured card for $200. I know I need to open another card or two but I am not happy with the choices that I have due to the credit crisis. I may look into Cap One soon.

Message 5 of 7
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New Visitor

Re: What are my next steps to rebuild my credit after receiving my discharge papers?

You should pay your new credit card in full.  Utilization is based on your statement balance -- not the balance you pay interest on.  So the best thing to do is to charge <$50 per month and pay the entire amount each month.  That will help your FICO score by keeping the utilization low.

 

 

Message 6 of 7
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New Member

Re: What are my next steps to rebuild my credit after receiving my discharge papers?

Ok, so I already messed up? Smiley Sad I have a $500.00 limit and have charged $200.00 and I will pay in full by due date.  I need to read more of the forums I guess.

 

Is there a updated list of BK friendly cards?

 

Thanks for the replies!

Message 7 of 7
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