Hello Loansafe. I got referred to this site by a friend and thought I'd come here for some advice. So I've just been foreclosed out of my home and now am renting with my parents. I know now I have to rebuild my credit, but I'm pretty much stuck on how to. Is it at all possible to get something like a credit card after something like this. My credit score has dropped sooo badly, I'm to embarrassed to say what it is now. Any advice on how i can rebuild my credit and obtain a credit card.
Welcome and thanks for joining the community.
The only way to rebuild credit is to establish new credit that you always pay on time. However, that is easier said than done but there are ways that you can go about doing this.
The very first thing you should do is pull a copy of report from one of the credit bureaus to make sure all of the information on there is correct. Due to the Fair Credit Reporting Act you are entitled to one free copy of this report every twelve months so do not worry about paying to receive this. when reviewing your report make sure all of the creditors are reporting the information accurately, and if they are not you need to dispute this right away. It would be terrible to be penalized for events you had no control of. Once you verify all of the information is correct you can start working on rebuilding your score before taking on new debt.
Paying your bills on time from now on is very important, so don’t think that it is not. Find a credit card or a bank to lend you a small amount of money and then pay it back on time, if you do not already have these. This is a great way to build your credit score back up after bankruptcy/foreclosure and be prepared because this may take years to do.
Credit Cards
If you have credit cards, you need to pay them on time if you want to improve your credit scores. If you do not have a credit card then you can apply for a bad credit credit card that are specifically marketed to people such as yourself. Major lenders will not want offer you credit but you can get a card from a subprime lender. The please be aware that the interest rate will be very high, but is probably the only way that you’ll be able to start rebuilding.
Also make sure to watch out for scams! be on the lookout for credit card scams that charge loan shark interest rates and almost impossible repayment terms. There are a lot of scams out there that you have to be alert for. Especially on the Internet. You can apply for a gas card, a department store credit or most subprime lenders.
Keep Fighting!
Evan Bedard
LoanSafe.org Support Team
The comments by me and the materials available at this web site are for informational purposes only and not for the purpose of providing legal advice. Most of the information you find here is easily available on the internet. You should contact your attorney to obtain advice with respect to any particular issue or problem. The opinions expressed at or through this site are the opinions of the individual author and may not reflect the opinions of the firm or any individual attorney. Please Read our Privacy Policy and Legal Disclaimer Here.
Great advice, Evan! As an aside, I was recently offered a secured card (even before my discharge). However, it had a whopping 59.4% interest rate, I don't remember what the default rate was (but I shudder to think...) Needless to say, I passed on this offer. I just ran my annual credit reports for all 3 bureaus and I was very surprised to find they were somewhat accurate for once. Everything was listed included in BK except for a couple of accounts. I filed an online dispute yesterday and one of the bureaus had already corrected the info as of today & closed out my dispute. Shocking!Originally Posted by Evan Bedard
I'm reaffirming my car (only have 18 months or so left to go & its a good car/good mileage, etc.) so I think that will help me with one of the revolving (is that the wrong term?) trade lines. I think I might try for a gas card. I read over on the BK forum about a gal who received a gas card and paid every month on time and her score was in the high 600s within a year of the BK. I REALLY REALLY REALLY don't want any credit cards as I think they can be toxic if your financial situation goes downhill, but I do have to rebuild my credit somehow. I like the feeling of being relatively debt-free (the student loans and the back taxes were not discharged - so need to work on paying those off). It seems like I've had a student loan forever and ever, I wish I could get it paid off...
wow! 59.4%...we used to call that a loan shark. Now we just call it the bank!
Thank you for posting! I am in the same boat... ch. 7. discharged. we had 1 card with a 0 balance that we didnt include in the bk that is still open so we have been using that to try to rebuild (like $30/mo on it). Thats in my husbands name so I'm trying to get one in mine and it's not going so well ;(
Posting Permissions
Reply With Quote
Bookmarks