Building Credit after bankruptcy
My husband and I lost our first home due to unpaid taxes, the home was under my husbands name. Since then my husband filed for chapter 7 now we are trying to rebuild his credit so we can purchase another home under my name. We would like to purchase something in the next 2yrs. What steps should we take to get started in the right direction? Is buying a car a good idea to start rebuilding his credit?
Terry Says
If you buy a car with bad credit, you’ll just be paying too much in interest. So if you don’t need the car, don’t buy it. Instead, you need a “secured” credit card — a regular Visa or MC that has a credit limit equal to a deposit you make in a bank. Some require as little as $500 to get this kind of card. Then you charge a little bit each month — and PAY IT OFF ON TIME AND IN FULL EVERY MONTH!
Your payments are reported to the credit bureau, and that’s how you start rebuilding your credit. Here’s a link to an article and a search for a secured credit card.
