Will my credit score rise 7 years after my ch. 13 bankruptcy?

Question

trying to figure out the best time to buy a house.

Answer 1

Well, it depends on how you handle your finances.

Answer 2

Assuming you do everything correctly, credit scores start to go up immediately after your bankruptcy discharges.  

If you are going to buy a home, you'll need to establish new credit. For example, a car loan or new credit cards.  

However, the absolute most important part of your climb out of the bankruptcy problem is to make sure NOTHING is paid late. A problem can be explained away-"I had to file bankruptcy because..." However, lates after a bankruptcy indicate that the bankruptcy didn't solve the problem.

A bankruptcy stays on your credit report for 10 years after the discharge or dismissal date.  However, if you have a large enough down payment, you can get a mortgage the day after the discharge.  

Answer 3

We had a bankruptcy and it wasn't completely off of our credit report for 10 years not seven.

Even when our bankruptcy was about four years old we were able to get a mortgage with 0 down and in the 5's percentage wise.

Now the rates are in the 6's for a 30 year fixed. Right now is a buyers market not a sellers, because the market is really bad, you might be able to buy a home.  

Answer 4

Each person's credit history is rated and the score, usually between 400 to 900, reflects that person's financial health. A low score means your are in poor financial condition, while a high score reflects your excellent financial health. The score you receive is used by lenders, insurance companies and landlords, among others, to determine whether and how much to loan you money or authorize the use of a credit card and what interest rate to charge for the loan.

There are several factors that determine what credit score you receive. The most important factor is your payment history. If you pay late, had an account sent to collection or charged off, you credit score will be lowered. Conversely, if you pay all debts on time, your credit score will be raised. The next major factor in determining your credit score is the total amount of your outstanding debt. If you owe many creditors and are close to the maximum credit limit on each card your score will be negatively affected. Other factors considered include the duration of your credit history. A younger person with little or no credit history will have a lower score than someone who has had accounts for more than five years. If you have recently applied for multiple new accounts, each application will be noted on your credit report and will lower your score. The types of credit you have will also affect your credit score. For example, a person with a mortgage and car loan will sc! ore higher than someone with only credit card accounts. Obviously, filing for bankruptcy and having your debts discharged will lower your credit score.

There are several things you can do to raise your credit score after filing bankruptcy. First, you should get a copy of your credit report by contacting the reporting companies, Experian (888-397-3742), Transunion (888-503-0048) and Equifax [phone]. Review the reports carefully. If you notice any inaccuracies or mistakes contact the reporting agency and let them know what item in the report is not accurate or is outdated. The agencies have 30 days to investigate and correct the alleged mistake. They are not obligated to investigate frivolous complaints. They will not correct or change any negative information that is accurate, notwithstanding the claims of certain credit repair companies.

One of the main things you can do to rebuild your credit is to pay all non-discharged debts on time such as your mortgage, car note or student loan. All future bills, such as new credit cards should be paid on time. You should get one secured credit card after you file, use it to make small purchases and make sure to pay the bill on time. Over the course of time you should build up the credit limit and make sure to pay the entire balance each month. Do not apply for more than one or two credit cards, including store credit cards. Keep the credit accounts in good standing for a long time. Finally, do not apply for loans or increase your credit limit for more than you will be able to repay at the end of the month.

If you follow these steps your credit score should be raised. After following these steps for two years you should be able to get a loan at the regular rate of interest. The information in this article is general and each situation is different. You should consult a credit counselor or an attorney for specific information for your case.

Answer 5

Bankruptcy is the scarlet letter of finance - that's the truth.

The best time to buy a home is when you've saved enough for a good down payment, and you have very few other creditors (as in maybe one credit card only).

Come to the table in a position of strength, instead of just trying to make ends meet and watch what was thought out of the question become easy as pie.

Becoming financially sound (living within ones means) takes discipline and rewards sweetly.  

Answer 6

1. If yu pae yer bills good, kredit skore rise evree month or 3 months.

2. Best time tu bi a hous is wen yu kan afford it & want tu liv init & kan find a good bi.

Answer 7

If you don't s***w up again, your credit score will improve in 7 years. You can buy a house anytime you want. It just may be difficult to get a loan to help you with it.