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    kimberlybell's Avatar
    kimberlybell Posts: 1, Reputation: 1
    New Member
     
    #1

    Jun 5, 2008, 01:23 PM
    Where can I rebuild my credit
    I just filed bankruptcy 6 months what can I do to build my credit up fast it is maybe a 400
    progunr's Avatar
    progunr Posts: 1,971, Reputation: 288
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    #2

    Jun 5, 2008, 02:55 PM
    There is no "fast" way to recover from bankruptcy.

    It takes time, while you can make small increases to your score with new credit, I would advise against that since you will be charged very high interest rates.

    Seriously, you just crapped on all the businesses that trusted you to repay what they loaned you.

    There is a price to pay for that, and the only cure is time, and caution to not end up right back in the same position.
    Fr_Chuck's Avatar
    Fr_Chuck Posts: 81,302, Reputation: 7692
    Expert
     
    #3

    Jun 5, 2008, 03:12 PM
    No fast, you can get some small credit card, charge a small amount and pay it off, do something similar with a small store card.
    Make sure your rent or house payments are done in time.
    Loan_Guy's Avatar
    Loan_Guy Posts: 83, Reputation: 6
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    #4

    Jun 5, 2008, 07:11 PM
    Quote Originally Posted by kimberlybell
    I just filed bankruptcy 6 months what can I do to build my credit up fast it is maybe a 400
    Kimberly,

    You said you filed 6 months ago. A couple important questions.

    1. Was it a Ch. 7 or Ch. 13?

    2. If it was a Ch. 7, was it discharged or dismissed? There is a difference.

    3. If it was discharged, what was the discharge date?

    This will help me give you a few "tricks of the trade".

    LG
    katmaiguy's Avatar
    katmaiguy Posts: 3, Reputation: 1
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    #5

    Jun 7, 2008, 08:52 PM
    Quote Originally Posted by kimberlybell
    I just filed bankruptcy 6 months what can I do to build my credit up fast it is maybe a 400
    A credit score of 0 is the best score you can have

    Why even worry about some score about how much you can borrow. DON'T borrow and you will never have to worry about a credit score.

    Remember a credit score is what got you in trouble in the first place. It is like going into a casino and believing you are walking out a winner. You will never win in money playing with a stacked deck like borrowing money. I am not one to say I am better then someone else I have walked in your shoes and done a lot of stupid stuff with money LOTS and LOTS of stupid stuff. Just my 2 cents not an expert on money or anything else.
    Loan_Guy's Avatar
    Loan_Guy Posts: 83, Reputation: 6
    Junior Member
     
    #6

    Jun 8, 2008, 09:11 AM
    Quote Originally Posted by katmaiguy
    A credit score of 0 is the best score you can have

    Why even worry about some score about how much you can borrow. DON'T borrow and you will never have to worry about a credit score.

    Remember a credit score is what got you in trouble in the first place. It is like going into a casino and believing you are walking out a winner. You will never win in money playing with a stacked deck like borrowing money. I am not one to say I am better then someone else I have walked in your shoes and done a lot of stupid stuff with money LOTS and LOTS of stupid stuff. Just my 2 cents not an expert on money or anything else.
    You're right! A credit score of 0 is the best score you can have. IF YOU PLAN TO LIVE WITH MOMMY YOUR WHOLE LIFE.

    Of course, if you plan to rent or buy a home, you will need to have a satisfactory score. Better yet, get a good job and save a couple hundred grand or so and pay with cash. Just make sure you can get a job where the employer doesn't look at your credit, as many do these days.

    Make sure you find a job close by home so that you can either walk, bicycle or ride a bus, as you will pay outrageous rates for a car loan (or pay cash) and for insurance (Yes, you need that).

    Just be sure to have enough cash on hand to get yourself out of any emergency, as you will not be able to rely on credit cards to assist you.

    As you can see, you need a healthy credit score in today's world. You can either use it or abuse it, much like alcohol. Some will use credit wisely and see it's benefits, while some will abuse it and dig themselves a really deep hole. Likewise, some people have a drink or two at a social occasion and others drink until their liver explodes; it's their choice.

    Be wise with your credit, as you will need it throughout life.

    LG
    katmaiguy's Avatar
    katmaiguy Posts: 3, Reputation: 1
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    #7

    Jun 8, 2008, 10:11 AM
    Quote Originally Posted by Loan_Guy
    You're right! A credit score of 0 is the best score you can have. IF YOU PLAN TO LIVE WITH MOMMY YOUR WHOLE LIFE.

    Not to get in a pissing contest but your mom or your mom's mom got by just fine without a credit score or at least my grandparents did. Last I heard the stores will take CASH even a car dealer. I know it is a hard concept to pickup in today’s world. I had to tell the car dealer on the last used car I got 5 times I did not need to finance the car I was paying CASH. I do not have a credit card nor do I want one or need one. Also when you walk into a store this say a furniture store and start counting out the Franklin’s I promise you will get a heck of a deal. But I am sure it is nothing like the deal you get on your airline miles from your credit card.

    On you statement about living with mommy
    I have not lived with my mother in over 20 years and have not had a credit card in the last 7 years. I cut the chase, discover... completely out of my life and they will never return. Making it just fine credit card free it is nice to have my hard earned money going to my IRA and not on the QT earnings statement of Discover, Sears, Chase, MBNA…….
    George_1950's Avatar
    George_1950 Posts: 3,099, Reputation: 236
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    #8

    Jun 8, 2008, 10:15 AM
    I recently saw a Dave Ramsey video on getting rid of debt and he had a section on building credit that was interesting. Let's say you need a new cell phone or appliance; how much can you afford to pay each month? $50? Start saving $50 per month in an interest bearing account until you have saved the price of the appliance; go make your purchase with the financing, then pay it off soon after, say three months later. But try to stay out of debt cause you will sleep better and feel better about yourself.
    Loan_Guy's Avatar
    Loan_Guy Posts: 83, Reputation: 6
    Junior Member
     
    #9

    Jun 8, 2008, 12:55 PM
    Kat,

    My last post sounded kind of rough after I read it again. Sorry if I offended you!

    The point that I was trying to make is that in this day and age, you have to have established credit. You have to show that you can undertake debt and pay it back responsibly. The issue is that many people don't do it responsibly.

    The absolute truth is that many stores reward you for financing. While the furniture store might reward you for paying cash, the auto dealer would rather have you finance since they often make money on it. When you are purchasing a house, the seller does not care if you are paying cash or not, as they are walking out of the title or escrow office with a check anyway.

    With good credit, I can invest $5,000 cash into a home and get the bank to give me $95,000 to match it. It the home appreciates only 2.5% over a year, I made a 50% return on my investment ($5,000 invested and $2,5000 back). Many people are content to place money into retirement accounts. I noticed you are putting yours into an IRA. Is it a Roth? What many don't realize is that if you need $60,000 a year to live on and you are in the 25% tax bracket (very low), they will need to withdraw $80,000 from their "regular" IRA just to net the $60,000. That can drain a fund pretty quick.

    If you are familiar with the credit scoring system, you would know that "scores" have not been around for very long. It was a lot of handshake agreements between ladies and gentlemen in a time when that meant something. The system was VERY subjective, not objective. There were actual credit files on people (that does not exist now - your "file" is put together from information available at the exact time you pull the report). It would say things such as "the home is poorly kept" or "we visited at noon and she smelled of alcohol". Not to mention racial and religious notations. Those days are long gone and thankfully so. I'll bet our grandparents never knew what was in their files.

    When it comes to debt, it is not all bad. There is "good" debt and "bad debt". There is a difference between me borrowing $20,000 on a credit card at 4.99% interest until paid off to purchase quality investments that average 8-10% and buying a boat, an LCD TV, a stereo, games and other "stuff" that depreciates. I am personally hundreds of thousands in debt in mortgages and couldn't be happier. Just don't try this at home - especially if home is in an area with declining home values. In that case, wait until they hit near bottom (don't try to predict bottom) and buy like crazy. It's good debt. Buy investment properties because all the people that got into trouble and filed bankruptcy and got foreclosed on are going to need a place to stay until they are able to get financed again.

    To each his/her own. I can respect that you don't want credit cards and that's fine. You may be very well established and have no need. For the vast majority of us, that three-digit number, our credit score, makes a big difference in our lives and should be as high as possible.

    LG

    PS. When you read these boards, you will see that we try to give good financial advice to a variety of people. It is not one size fits all. I wish that the original poster would have been on here before they filed bankruptcy. Maybe there was something that we could have done to help, maybe not. When I suggest to buy the foreclosed houses cheap, as people will need somewhere to live, I mean that not to put anyone down, but to be able to help others out. Believe me, it's much easier with good credit.
    Loan_Guy's Avatar
    Loan_Guy Posts: 83, Reputation: 6
    Junior Member
     
    #10

    Jun 8, 2008, 01:11 PM
    Quote Originally Posted by George_1950
    I recently saw a Dave Ramsey video on getting rid of debt and he had a section on building credit that was interesting. Let's say you need a new cell phone or appliance; how much can you afford to pay each month? $50? Start saving $50 per month in an interest bearing account until you have saved the price of the appliance; go make your purchase with the financing, then pay it off soon after, say three months later. But try to stay out of debt cause you will sleep better and feel better about yourself.
    George,

    I don't know a lot about Dave Ramsey, but I am familiar with him. He and others such as Suze Orman are not very aggressive when it comes to investing. While I may not personally agree with their styles, I think it is well needed right now.

    Our annual saving rate in the US is NEGATIVE 1% and probably getting worse with the increased use of credit cards for gas and groceries, etc. We need someone in the media who will help people make sound financial decisions and help save money. I think this situation is going to get worse before it gets better.

    That said, I think the mainstream media is responsible for a lot of the issues. They report doom and gloom ALL THE TIME. For example, they are reporting declining housing prices throughout the US, but in my area (in one of the top states for foreclosures) house are APPRECIATING about 2-3% a year still.

    To make it worse, they make-up phrases intended to get an emotional response. How does "Ground Zero", "Mortgage Meltdown" or "Credit Crisis" make you feel? Heck, they have even predicted 40 of the last three recessions.

    If Dave Ramsey can help make some sense of this, I'm all for him!

    Save as much as you can, spend wisely, conserve energy, and take responsibility. I think that should be our new battle cry.

    LG
    valeriealm's Avatar
    valeriealm Posts: 8, Reputation: 1
    New Member
     
    #11

    Jun 22, 2008, 05:45 PM
    Quote Originally Posted by kimberlybell
    I just filed bankruptcy 6 months what can I do to build my credit up fast it is maybe a 400
    If you don't have any credit cards get ONE and use it but only half the limit and pay your monthly payments on time!!

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