Home Equity Loan
The fastest way to rebuild credit after bankruptcy?
Let say i filed bankruptcy, I want to rebuild my credit(720+) within 2-3 yrs. In order to do this, I need new debts which i can afford. These debts are called: Installment(auto loans, student loans or mortgages)and Revolving(credit cards or home equity lines of credit). I want to rebuild my credit while im in school, my plan is get a student loan(Installment) and 2 secured or unsecured credit cards[(Revolving)manage to spend only 30% each credit card and pay it off each month]. So, here's my question: Which one will rebuild my credit the FASTEST? Student loan + 2 CCs VS. auto loan+student loan+2 CCs? I don't want a car loan and definitely can't afford mortgage. I prefer Student loan and 2 CCs. Other than my preference what else should i do? Here's the link for rebuilding credit after BK: http://articles.moneycentral.msn.com/Banking/BankruptcyGuide/BounceBackFastAfterBankruptcy.aspx
Public Comments
- Check out orchardbank.com I filed last year and I got a cc with low interest even after Bankruptcy. Too much loans will not help score. Go with 2 credit cards and keep paid off each month I would wait one year than buy a car or you will get extremely high interest on loan. Check out daveramsey.com You need to start new credit life by being debt free.
- Aim for the following 3 major goals while repairing credit: 1. Make a commitment to pay the bills within the due date always. Also ensure you do not carry forward any balance on the credit cards each month. 2. Open a savings account and go on saving regularly. This acts as a protective shield if you face any financial crisis. 3. Plan and adhere to a manageable budget. You can get many such ideas and tips on proper budgeting on the Internet.
- While availing a credit card, it is necessary to check the credit card rate. This rate plays an inevitable part, as based on this rate your payment amount is decided. Various credit cards are available with different rate. Every time, consumers try to choose a credit card at a lower interest rare. Most of the time, it is seen that while choosing a credit card, people generally check whether the rate is low or not. But a low rate cannot be the only consideration in availing a credit card. Besides rate, a consumer should heed in other factors as well. Remember, though various credit card companies entice consumers with low interest rates; at the same time, they include various hidden costs and charges with a credit card as well. So, do not only verify the interest rate, but also consider other things while availing a credit card. Many a time, credit card companies offer low rate for a specific period of time. Such low rates are considered as an introductory offer of various companies. In such cases, check how long the offer will last. After the period is over, verify what the interest rate will be, whether it will be affordable for you or not etc. check Out a lict of popular low apr credit card list at: http://www.credit-card-gallery.com/0_Intro_APR.html and choose a best one according to your choice.
