Hi, this is my first time here, very informative forum.
Ch 7 BK discharged 7/07. Cleaned up all three reports, got First Premier unsecured card $450 & Target Red card $300, keep 10-20% balance on both to establish payment histroy, have paid more than minimum payment every month. No other debt, everything listed correctly on all three reports. Trans Union FICO is 636, I think that is my middle score, don't want to pay for all three just yet. Ultimate goal is buying a house at some point next year, so I want my score to be 720 at least. Thinking about getting car loan ($14-16000) in the next few months, would it help my credit? The FICO score simulator shows a decrease in score shouldI apply for a loan, so how long would it take for the score to go up? I can easily afford the payment, but I can also continue to share car with hubby if need be. What else should I be doing besides keep paying credit cards on time?
Any information would be greatly appreciated, thanks!
It sounds like you're already doing a good job of putting your credit back together. Cut your card balances to between 1% and 9% when they report monthly. That maximizes your scores.
A car loan will help your scores in the long run, even if you see a slight initial drop. Most people say a new account must age about 6 months before it starts helping your score. In my case, a new $39K car loan made virtually zero impact on my scores upon first reporting.
For what it's worth... From personal experience, I can tell you Ford Credit approves 0% (on vehicles offering it) for scores 620 and over if you have "stable" address and job history. Bankruptcy is not a killer to them. The finance manager at a local dealer told me this before I applied and I was approved.