Rebuilding My Credit After Bankruptcy. Part 2

  •  Upon filing a Chapter 7 your debt-to-income ratio drops dramatically. Try to keep it low.
  •  Create a realistic budget so you can pay all bills on time.
  •  Get  your credit reports again. This time you may have to pay a small fee.  You want to be sure all your debts are marked “discharged.” Also, check  your credit score again.
  •  Get a secured credit card and pay the balance in full each month. Paying off your balances will boost your credit score.
  •  Get  an auto loan but be wary. There are unscrupulous used car dealers who  will sell cars much over value at high interest rates. Buy a modest car  with payments you can easily afford. Be sure to know the estimated  values of cars. Some well-known sites include kbb.com and www.nadaguides.com and www.cars.com.
  •  Whether you reaffirm an existing car loan or get a new car loan-pay on time-never be late.
  •  It is best to have 2 credit cards. Even if they are secured credit cards.
  •  If  you are declined credit from a company based on a new credit report you  are legally entitled to get a free copy of that report. Look for errors  and bad marks.
  •  Once a year get your free credit reports  and review them. If there are errors (and there often are) you have the  right correct them.
  •  Be prepared to walk away from a bad deal. High interest can prevent you from getting back on track.
  •  Even  one late payment can drop your credit score 50 points.Avoid credit  repair agencies, they’re often rip-offs and don’t do anything you can’t  already do yourself.
  •  Never use a Pay Day or a Car Title Loan. They are endless money pits.
  •  Only  get a store credit card if you shop there and pay the balance as fast  as possible. Too many credit applications can hurt your credit score.
  •  Avoid getting cash advances on a credit card. It looks suspicious to the credit agencies.
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