I just filed bankruptcy in February of this year, received discharge in May.?

Question

I am at my wits end. My attorney suggested trying to reestablish immediately. However, with the bankruptcy on my credit most credit cards are reluctant to extend credit. I have been told different things by different people. Therefore, I would really appreciate only people with experience with this problem responding. I have both a checking and a savings account, have set up all my accounts such as utilities and cable in my name, and have made all payments on time, and in full. Which credit card (secured of course) would help me to reestablish. I know that due to the circumstances the interest rate may be a little high, but I just want the opportunity so that when my fiancee and I prepare for home ownership down the road I'll at least have some credit established. I have been told by a realtor that sometimes new credit or reestablished credit can be just as bad as having bad credit....HELP!!!...

Answer 1

A chapter 7 it sounds like right?  Go to your own bank first- see about a secured card.  Make sure that you don't charge more than 30% of your credit limit.  Don't ever pay late.  Alot of people think if they pay their cards off each month it helps their score, this is not correct- leave at least a $10.00 balance on it when you pay, so it will report as active.  It does take awhile for people to offer credit after a bankruptcy.  Usually about a year, but you might try a small finance company also- small loan $100.00 or so & make payments just to establish.  Your lights, cable, rent do not report to the credit bureaus so that won't help you.  I filed in 2005 on $90,000.00 worth of debt- I now have over 700 scores again because I didn't overload myself with debt.  By the way- 2 years after a chapter 7 is discharged you can buy a home using an FHA loan.  Life does not end!  Good luck!

Answer 2

i filed abt 2 years... as soon as you file there will be penalty of credit card offers coming in the mail.. I didn't apply for credit until after a year which is what they (attorney) tell you when you file... If you want to get credit again right away.. your best way is to get a car with a note that it very affordable or go with a secure credit card..but i believe you have to wait a year b4 you can even get new credit... I got my first credit card this year with WAMU and their charges started at 9.99%... good luck

Answer 3

You paid your attorney and now you do not want to follow his advice? Would you go to a doctor and ignore his/her advice also.

I am also surprised that creditors rush to extend very expensive credit to those just finished with a BK but they understand you cannot refile for seven years. That gives them a long time to harass, intimidate and annoy you should you have not learned your lesson.

You will need credit....Take a little too help re-establish yourself. I hope your attorney advised you to hide a low debt pre-BK credit card. It should have the best credit rate you will find for years.

Good Luck.

Answer 4

Unless you plan on buying a car or a house in the near future I wouldn't really worry about it.  You will get many "Buy a car" offers almost immediately.  After about 7 - 10 years it will build back up slowly.  Just take steps not to make the same mistakes that forced you to file bankruptcy the first time.

Anything you get the interest rate will be high.  Concentrate on paying with cash.  It is so much better.

Yes I did file bankruptcy it took about 7 years to start re-establishing my credit.  It then took another 3 years to almost ruin it again.  But it is getting better.