Filed last payment today

[Reddrocket07]

I'm excited that we paid our final payment. We will definitely have an extra paycheck laying around, even with the increase in our student loan repayment plan per month. I'm excited that we will actually have more money to put into savings. My wife wants to get a small credit card to start building up our credit, but I dread it, knowing that's partly to what lead us to filing to begin with!

Anyway, does anyone have any advice on how to start building up credit history safely and responsibly after BK is discharged?

[makeupho]

congratulations! feels good, doesn't it?
i don't know if this is considered safe or responsible, but i asked our attorney if/how i should start rebuilding while still in 13. he suggested i apply for low limit cc, so i got a secured one through my bank in March of last year, 8 months before we made our final payment to our Trustee. it reports favorably on my credit reports, as long as i keep the balance around 10%.
(i did apply for 2 unsecured at the same time, and was declined, btw)
good luck.

[LadyInTheRed]

Congratulations on finishing your plan!

Your wife is on the right track. To rebuild credit, you have to use credit. Making timely payments on your student loan debt will help and that alone will eventually improve your credit score. If you get a credit card, charge no more on the card than you can pay in cash. Put the cash aside and pay the balance in full as soon as you get the statement. Never let the balance go beyond 10% of your available credit and never charge something you don't have cash to pay for. If you will have cash when you get paid tomorrow, then wait until tomorrow to make the purchase. It is said that having different types of credit is helpful. So, a car loan could also help. You could save money until you have enough to buy a car, take a loan and then use your savings to pay it off. But, unless you really need a car, don't do that until your credit is good enough to get a reasonable rate. Paying a lot of interest to increase your credit score isn't worth the cost.

If you are not comfortable using credit and think you do not have the discipline to use it responsibly, then don't. Living on a cash only basis is a good thing! Your credit score is not as important is the credit industry wants you to believe.