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    Almost discharged!

    I have one more payment before my chapter 13 is finally discharged. My credit score went from 585 right after filing to 629 today. For some reason it went down 12 points in the last 3 months, but I have no idea why.

    Luckily my car lasted "almost" for the entire three years and I just recently donated it. Since I take the bus to and from work and get my groceries delivered I have been able to do without a car. Grocery delivery is a about 15% more than going to the store but a lot cheaper than a car note and insurance. It has been heaven just using cash and not having to worry about credit card bills coming in the mail. If I go shopping there are no "consequences" afterward.

    I will need a car eventually though because not having one really limits me. At this point I think that with my credit score I would have a really high interest rate so I am interested in what the best way to raise my credit score would be. What would my score need to be in order to get a decent interest rate on a car loan.

    What is the best practices when trying to rebuild credit after a Chapter 13. I never want to be in the position of having to file for bankruptcy again so I'm not interested in getting a lot of credit cards but I'm assuming I will have to get one or two and use them regularly (and pay them off) to raise my credit. Do purchases that are small like $10-$20 count when trying to repair credit or do you need to make larger purchases.

    Any advice?
    Filed 11/17/11 Chapter 13, 341 meeting 12/21/11. Plan confirmed 1/19/12 - DISCHARGED 12/16/15

    #2
    No advice? hmmm. Could someone at least point me in the right direction on the best place to get advice on rebuilding credit after bankruptcy? How long does it take to get a decent credit score built up?
    Filed 11/17/11 Chapter 13, 341 meeting 12/21/11. Plan confirmed 1/19/12 - DISCHARGED 12/16/15

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      #3
      Hi congrats! Open a card and use it lightly.
      Discharge date: October 2017 (will it ever get here?)

      Comment


        #4
        Check out the "after discharge" forum...
        CH13 - filed 30 JUL 09, $1521 @ 60 mos (100% payback)
        Done!!! - 01 Jul 2014 I'm free!! Discharged 9/23/14!

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          #5
          Congratulations on being so close to completing your plan!

          Do purchases that are small like $10-$20 count when trying to repair credit or do you need to make larger purchases.
          Small purchases are ideal. From all I have read, you will do best by keeping your utilization under 10% of your available credit (per card and over all cards). The terms available right out of BK may surprise you. Or maybe not. It really varies by the individual's overall credit and financial situation.

          Originally posted by zeezee View Post
          Check out the "after discharge" forum...
          Yes. And under that forum you will find subforms on Buying a Car After Bankruptcy and Rebuilding Credit that have lots of information.
          LadyInTheRed is in the black!
          Filed Chap 13 April 2010. Discharged May 2015.
          $143,000 in debt discharged for $36,500, including attorneys fees. Money well spent!

          Comment


            #6
            I would first wait a month or two after discharge and pull your credit reports to make sure everything is reporting correctly and dispute any errors.

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              #7
              This article states that it is for chapter 7, but I would assume it's applicable to chapter 13 discharges.

              How to go from discharge to 700 in 2 years

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                #8
                Congratulations! Yes, we got a cc Credit One, make small purchases & pay it off. I know how happy you have to feel.
                Plan Completed 10 months early 09/24/2014 Discharged 11/04/2014

                Filed Ch 13 Aug. 2012 341 Meeting 09/12/2012 Confirmed 10/23/2012

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