Question on Bankruptcy

Discussion in 'Credit Talk' started by AntiCRA, Nov 5, 2001.

  1. AntiCRA

    AntiCRA New Member

    More questions.
    This time it concerns your credit after a Bankruptcy (ch 7). I understand that it is not as negative as it used to be considered and that some people will even be able to get mortgages and credit cards 6 months after a BK? Is this true? Are there any other ways of cleaning up a credit report after a BK, sooner than 10 years?

    GEORGE Well-Known Member

    Unsecured cards 2 years post BK.
    Mortgage reasonable rate <8%?

    6 months may be pushing it...
  3. keepmine

    keepmine Well-Known Member

    With 2 years of clean post bk credit, you qualify for FHA mortgages at conventional rates.
    Unsecured cc's will be another story. The number of subprime lenders is shrinking. If you do get a cc, that fast, the terms will be pretty bad.
  4. on the go

    on the go Well-Known Member

    I am post ch. 7 6yrs. in Jan. Didnt start rebuilding till 2yrs. ago . Thanks to this web site, now have mortg. at 5yr. mark and first prime card 4wks. ago (thanks citi bank.). From info. I have got when bk. hits its 5yr. mark it dosent have as great of effect on your score. If you have been able to maintain some credit between now and then. You use to be able to start getting sub-prime about 6mo. later or secured,(do it! even with crapy terms but after first year renegotiate or dump them if you have managed to obtain others. just get the ball rolling) Then after 2yrs. try for car loans, or small easy to get sub-prime by then you should be able to get past the secured point. Between the 2yr. and 5yr. point just negotiate with lenders you have been able to obtain for terms and limits, watch you credit ratio and keep a eye on your score. Its just important to get that 2yrs. of credit history between ch.7 date and 5yr.mark the longer the history the sooner you will be back in the game even with bk. on credit report. Hope this helps just my personal experience and research.
  5. Marie

    Marie Well-Known Member

    Easier than I'd ever think.

    The best advice is to immediately start rebuilding credit as soon as you can after discharge. I waited a year to do anything and now I wish I hadn't.

    Best subprime: Cap1 secured and/or unsecured. Providian (if they're still in business in the future), Household (a bit expensive the first year but gets better with age)
    FCNB for a secured card but not their unsecured

    Cap1 is great because you can get 3 cards in time and then you can combine. Use the cards, be aggressive in calling, and you can have a prime card in 2 years or less.

    After 2 years of solid building and disputing you'll see great improvements in your scores and mortgages are easy if you have a good broker who knows the subprime market.

    The big thing is: the last 24 mos count most in score calculations.
  6. KristyW

    KristyW Well-Known Member

    I think it is now 4 years after a BK before you can get a mortgage at "A" rates. They are clamping down.

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