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Improving credit score post-bankruptcy

Hi - my husband and I recently went through forclosure and bankruptcy (last July). Our credit is terrible (570's- 600). Our combined income is about $100,000 a year, and I am hoping/praying to be able to buy again in about a year or so. Is this possible? Also, every credit card we apply for, we get denied - how in the heck are we supposed to show improvement in our credit scores if no one will approve us for even the smallest credit cards?

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jakesmom2233

Asked by jakesmom2233 at 11:46 PM on Mar. 18, 2009 in Money & Work

Level 1 (0 Credits)
Answers (4)
  • I doubt you'll be able to buy in the next year. A few years, maybe. But the bankrupcy will be on your credit report for 7 years and in the current lending climate, I don't think you'll find a lender.

    What to do? First find a secured credit card, get that ONE and stop applying. Every time you apply for a card and are turned down, it's a hit on your credit.
    Once you have a secured card, use it at least once a month, always stay below your limit, and always pay it off fully every month.
    After a year, try to get an unsecured card. Do the same thing - use it every month, never go over your limit, and always pay it off fully every month.

    For some other tips, try here:
    http://www.ehow.com/how_2076882_recover-from-bankruptcy.html
    kaycee14

    Answer by kaycee14 at 11:56 PM on Mar. 18, 2009

  • Thank you very much.
    jakesmom2233

    Answer by jakesmom2233 at 11:58 PM on Mar. 18, 2009

  • Get a secured credit card. Yes, you'll probably be able to purchase a home a year from now. Bankruptcy only improves your credit, I know it doesn't make sense, but it does. Give it a year or two and everyone under the sun will be sending you credit card apts. The problem right now isn't your bankruptcy it's the economy - people with perfect credit are getting denied for credit cards. You'll have new cell phones, cars and a new home in no time at all. My credit score is lower than yours (because of dept in my teens) and I still get credit card apts. And until a few months ago they all went through just fine. Wait for the economy to get a little better and you'll be right back in dept again. (thats a joke!)
    Works4Mom.com

    Answer by Works4Mom.com at 8:39 AM on Mar. 19, 2009

  • Thanks, works4mom!!
    jakesmom2233

    Answer by jakesmom2233 at 10:40 AM on Mar. 19, 2009

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