Can I do anything to get a jump start after filing before discharge?

[kl030505]

Rebuilding our credit is going to be a long uphill battle. We weren't able to file soon enough so there are a ton of charge offs, even a couple of judgments. We don't have the $$ liability, but the challenge will be rebuilding our credit with all that stuff on there.

So, we will file tomorrow... is there anything I can do to get a jump start after we've filed, but before we are discharged? I know that I can' take any new debt till after the discharge, which is fine, but should I pull the reports after the 341 and start trying to fix reporting errors, or just wait till the discharge is granted.

What do you reccomend for rebuilding credit? We will have student loans with solid repayment history, and my car payment we plan to re-affirm, so that should be current as well. Is it better to get a small secured card and use it and pay it off every month, or wait a few months for an unsecured card offer and use that and pay off every month... what else can we do? I'm thinking we will need 2 cards, one in my name, one in my husband's (I didn't take his last name, so our credit reports stay really really seperate).

Any other suggestions? We want to be able to get a home again in 4-5 years, and I'd like to re-establish my credit in that time. We may need an auto loan in April 2009 (My lease will be up and we plan to buy outright. Will owe $12K, probably put about $5k down and finance the other $7K). I'm not expecting fabulous rates, but it would be nice if I wasn't paying more than 12% or so... My husband's car is owned outright at the moment, we will probably need to replace his in 2-3 years. Other than that, I don't anticipate "needing" credit, but I want to do everything possible to raise our scores once I finally can. Any thoughts are appreciated.

[emoney]

First things first. Plan and use a written budget, next clean up credit reports as possible. Next get, if you can a securied cc from First National Bank of Ohama. They require a security deposit of $500+, but only charge $20 per year and they report to all three CRAs.
After a few months of good payment history is estabilished find a bank that will loan you $1000 and pay that back in a couple of months. You may have to secure this loan with a deposit.
After you have done this which can all be done within six months you are on the road.
While doing this ask yourself how did this happen and do not make the same mistakes again.
The Dave Ramsey Radio Show offers some good gudiance too.
regards,
emoney

[kl030505]

Budgeting is not a problem, have been doing it for quite some time. I have been living on a cash only basis for 2 years, we got into this mess because of prolonged unemployment and underemployment, not because we are crazy spenders.

I just need to know what steps are best to get to rebuilding my credit score. My credit history is decent except for the past 2 years, and it goes back 12 years. THere's 10 years of perfect history and 2 years of crap. But the last 2 years is really bad - maxed out cards, late payments, charge offs, judgments, etc.

Is it really worth it to do a secured card? Or am I better off waiting to get a no -annual fee unsecured offer. Even in our current situation I get pre-approved offers like that at least weekly. It might be worth it to me to wait to not pay an annual fee.

[brokeinmichigan]

Just from personal recent experience, I'd wait. We are only 4 months out of BK7, and I just got an unsecured Platinum MC from Capital One with NO annual fee and 0% interest for the 1st year. After 1 year it goes to some high APR, but that isn't an issue as we'll be paying it off in full every month. Take the first few months to clean any discrepencies...it takes a while...seems like a full time job some days. You'll be getting pre-approved offers in the mail very soon...but just wait for one with no fees, no deposits, etc.

Good luck.....

[Boscoe]

Order your 3 credit reports (annualcreditreport.com) for free, and dispute anything and everything that you do not agree with. Keep working on the negative items on your report and your score will increase.

From what I hear, you will be eligible for an FHA insured mortgage after 24 months once you are discharged from BK.

Did any credit cards survive the bk, or were they all closed?

[kl030505]

I don't know if anything will survive. I had a Kohl's card that has a zero balance on it, so it isn't in my creditor matrix. I don't know if they will close it after they discover the bk on the report. If it doesn't that would be helpful. I use it to get the periodic additional % off and always pay it off.