What to do next?

[Shanfish]

We received our CH7 discharge on 5/26/11. We have a rental property that will hopefully someday foreclose. Our main goal is to buy another house in about 5 years. We expect to save a nice chunk for a down payment. But in the mean time, what do we do next? I have student loans that will be coming out of deferment and my husband has a car loan that we have kept, so each of us will have one source of credit reporting, but that's it. Should we take out a secured loan that has both our names on it? Or each get a secured credit card?

I don't even know where to begin to check our credit scores... I would like to keep an eye on them, but do not want to pay those hefty monthly fees. Suggestions? Thanks!

[wantout]

Dont hurry to borrow money, enjoy not haveing debt...take a breather, get a plan together for your finances.

[AngelinaCat]

Do NOT take on any more debt. Pay on the student loans and the car loan as normal. Do not fall behind. Other than those notes, learn to live on a 'cash only' basis. Create an emergency fund of at least $1,000.00, and pay yourselves at least $10.00 a week from both of your paychecks into your Retirement fund(s), and you should do well.

Good luck to you!

[tobee43]

shanfish, first congrats on your new debt free life!!!

i really wouldn't worry about building up your credit so much as putting in as much time from you discharged date and when you apply for what you consider a much needed purchase. i'm not suggesting that you don't keep a very close eye on your credit reports, i just wouldn't be as concerned as many are about getting credit cards asap to build up your credit.

we did get two credit cards, and at first used them, but now, really only use them for i.e. a car repair that we might have to dispute or something along those lines of nature.

if you feel you want to improve your "new history " with cards...the offers will begin to roll in, using orchard bank and capital one are bk friendly, and many on this site began with hoosters and best buy cards.

best of luck to you! time does heal MOST wounds and that includes your credit!

[iswmle]

I am looking to buy a house in the next 7-10 years, and waited a while before getting a credit card. Actually, I waited until I was in a position where I had to have a credit card (rent a car). If it was not for that I would have waited probably another year. Afterwards I read through some BK forums where many suggested to try to improve your credit ASAP, so I decided may as well since the ball was rolling.

So I have 2 credit cards, one secured, one unsecured. The unsecured has a low limit and is used for net purchases. I use the secured for everything else. Both cards I keep under 20% utilization and PIF every month. I balk at the idea of getting a secured or auto loan. I don't mind using the credit cards, but getting a loan is (to me) just going into debt. But YMMV.

[Logan]

We received our CH7 discharge on 5/26/11. We have a rental property that will hopefully someday foreclose. Our main goal is to buy another house in about 5 years. We expect to save a nice chunk for a down payment. But in the mean time, what do we do next? I have student loans that will be coming out of deferment and my husband has a car loan that we have kept, so each of us will have one source of credit reporting, but that's it. Should we take out a secured loan that has both our names on it? Or each get a secured credit card?

I don't even know where to begin to check our credit scores... I would like to keep an eye on them, but do not want to pay those hefty monthly fees. Suggestions? Thanks!

To get a mortgage in 5 years you will need to establish 3 lines of credit. Student loan, car loan, credit card etc. Make sure the car loan is reporting on your credit. Do not get any credit that you have to pay credit on unless it's car or house. Avoid paying annual fees on credit cards.
And pull your credit reports to make sure they are accurate.

Good Luck,

Logan

[Shanfish]

Thanks for the advice everyone I think I will start with pulling our reports to see where we stand and get rid of any mistakes. I am guessing I will have to pay to do this...are there any favorite companies to get all 3 scores from?

[iswmle]

I don't believe there is anywhere you can get all 3 scores anymore... I go through myfico.com