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Need a lil advice on how to build my credit after a bankruptcy?

Discussion in 'Off Topic' started by glockguy, May 8, 2010.

  1. glockguy

    glockguy Albany Oregon Well-Known Member

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    So I need to build my credit back up since i filed bankruptcy about a year n a half ago. I was thinking of getting a credit card.. So i can use it once or twice a month to maybe buy gas or something and then pay it off... and so on... and Id rather not pay annual fees.. But maybe I'll have to, or is there a different way?... What do ya'll suggest?:confused:
     
  2. e28rusty

    e28rusty Newberg Member

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    Prepaid credit cards are available from most banks without a fee. Don't have to get approved either. Safest way I know to build credit.
     
  3. parsons_12b

    parsons_12b LaPine Oregon Well-Known Member

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    Pm sent
     
  4. dobeman

    dobeman Hillsboro Oregon Bronze Supporter Bronze Supporter

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    try living on a cash basis. Serious. you won't need a credit score.
     
  5. e28rusty

    e28rusty Newberg Member

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    This is great, until you need credit to get a home loan. I think you have the right idea, assuming you have some self-control you should be fine with a card for gas and it will get you headed in the right direction.
     
  6. Gunner69

    Gunner69 Hillsboro Member

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    You have the right idea just need to expand on it a little..

    Get a secured card your bank should have an option of some sort, if not just be wary of the annual and setup fees associated with some of them READ THE FINE PRINT...

    Once you have the card immediately pay off what ever balance on it if applicable...

    Now that you have zero balance charge up to 75% of the available credit on it every month.. $200 limit your spending $150.. Pay off the entire amount every month on time or a couple days early. NO LATE PAYMENTS... Becareful some places actually charge up to $9 to make an online payment.

    Do this for about 6mos straight.. after 6mos with no late payment and a zero balance on the card, call the issuer and see if they will raise your credit limit.. Ask for a specific amount not " Hey I've been making my payments can you guys bump my credit limit" Rule of thumb I used when I was rebuilding was a 15-25% increase. It won't seem like much initially but it adds up once your limit gets up there.

    Keep in mind credit scores are crawling right now.. I took a fairly sizeable hit (235pts) 2yrs ago due to my accounting error in my check ledger for a rental property.. I bounced the check for the taxes and they popped a lein on the property before I even got the NSF notice from my bank. I'm making good progress back up again but I'm only gaining about 10-25pts a quarter right now.

    Bottom line be smart be dilligent and you will get your score up.. And the whole comment about going cash only and not needing a decent credit score.. Good luck getting a job, cheap insurance, etc with a sub 600 credit. It is becoming increasingly common for prospective employers to run credit checks even if you don't have any contact with finances.. A previous company I worked for wouldn't even give 2nd interviews with scores of less than 650.
     
  7. glockguy

    glockguy Albany Oregon Well-Known Member

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    I dont NEED credit card, I try to live by, if i cant pay for it i dont need it, but like someone else said When it comes to buying a house or getting a job credit matters, an I know i wont ever have a couple 100 thousand cash to drop on a house anytime soon:laugh:
     
  8. gnarkill

    gnarkill Richland, WA Member

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    This site has a wealth of info register on their forums and look around lots of good people over there:
    www.myfico.com
     
  9. Dyjital

    Dyjital Albany, Ore Flavorite Member Bronze Supporter

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    watch it too, some will assess an early payment fee.
    (yeah, retarded I know)
     
  10. endthefed

    endthefed Hillsboro, OR New Member

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    Did any of you guys realize that income does not affect your credit score? Did you know that savings has no effect on your credit score? Did you know that if do not use credit for 10 years your credit score = 0? What does this mean? I'll give you an example. A millionaire walks to an apartment and tries to rent an apartment. He is denied because his credit score is 0. He then writes a check to buy the entire apartment complex. Yay, now he can rent an apartment. If this seems stupid it's because it is. Institutions that make decisions based solely on your credit store exist and are growing in number, but they are still stupid. The only way to increase your credit score is to borrow money and pay it back. Income does not affect it and savings does not affect it. It is NOT a creditworthiness score but rather an "I love debt" score. It is a marketing scheme put together by banks and credit card companies who make money by lending you money. It is not in your best interest to have a good credit score. There are still companies who do manually underwritten mortgages which means they check to see if you've paid your rent on time and see what you have saved and overall if your a reliable borrower.
    As for your credit score for getting a job? Maybe, but the fact is you will always have the bankruptcy on your record so why not say," I screwed by borrowing money so I never borrowed money again,"or you could reply,"I screwed up borrowing money so I'm working on borrowing some more as quickly as anyone will let me." I'm moving on to my 2nd business startup and I've hired many employees and never checked a credit score, but if I did I would rather hire someone who filed bankruptcy and now has score of zero than hire someone who filed bankruptcy and now has score of 855.
    Banks make money by lending money. Stop giving them your money and you will be wealthier. It's that simple!
    Phew! I need a drink.
     
  11. glockguy

    glockguy Albany Oregon Well-Known Member

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    ok i need a better job where do i sign up:)
     
  12. deadeye

    deadeye Albany,OR. Moderator Staff Member

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    I'm sure that your government will have an opening soon............

    seriously just go buy a truck, car or something substantial then pay on it for at least six months, even pay extra, then if feasable pay it off or trade it in and it will help. It may be high interest but everytime you do this it will come down and your score will get better. This shows you make timely payments and have paid off loans.
     
  13. glockguy

    glockguy Albany Oregon Well-Known Member

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    Wellll my wife and i currently have 2 SUVs we are paying on (both in her name) that we got when we were dating.. soo I don't really need a car lol...
     
  14. deadeye

    deadeye Albany,OR. Moderator Staff Member

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    If you have those two financed what is the problem with credit? I would see if you can trade one in and get a lower interest if their high because of the bankruptcy. Maybe if you get the payment down it would help with the house loan. Cant really say too much as I dont know enough about your situation as far as income, payments or current interests being paid.

    Is a home loan (I assume) what your trying to get to?
     
  15. glockguy

    glockguy Albany Oregon Well-Known Member

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    I filed last year around feb. before we got married ( I got married the 10th of last month) Soo Her credit is decent. as of now the cars are the only debt we have. But when i do decider to get a house i dont want my Credit to be an issue.
     
  16. DERGLOCKINMEISTER

    DERGLOCKINMEISTER SPRINGFIELD OREGON Member

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    Revolving debt will show on your credit , but won't do much to improve your overall Beacon score. Installment loans will improve your credit quicker and with a higher balance.
    Buy an inexpensive car , motorcycle , pay the higher interest for 4-6 months , then refinance at a lower rate . This is the business I am in and I arrange financing for the credit impaired for a living . Those that tell you that credit is unimportant never rented a car , rented or purchased a home , car , got insurance , etc. all these things require a good credit rating in order to get the best pricing . There are a number of good , honest business people in your area that could be of help to you . Contact me if you have any questions.