building up credit

Author Message
cindyrae

Guest






PostPosted: Tue Oct 13, 2009 5:14 pm    Post subject: building up credit

It's been a year since we were given judgement on bankruptcy. I was able to finance a used car w/a dealer w/affordable monthly payments. Will the purchase help my credit score improve even tho the bankruptcy stays on my credit for 7 years? Tx.
_________________
Need help choosing the right loan? Get free consultation from community lenders/consultant
Icon Mini Profile adonis
adonis



Joined: 22 Oct 2005



Posts: 3852
Location: ALASKA
120.89 Dollars($)
PostPosted: Tue Oct 13, 2009 9:05 pm    Post subject:

Welcome cindyrae,

Just purchasing a car will not help you in improving your credit score. If you keep on making regular monthly payments for the car and if your lender reports it to the credit bureau, then it would help you improve your score.

_________________
Procrastination is the enemy of your financial sucess
Icon Mini Profile gunzijjistaff
gunz.ijjistaff



Joined: 07 Apr 2009

Posts: 454

6.41 Dollars($)
PostPosted: Wed Oct 14, 2009 4:52 am    Post subject:

Before purchase a car, How much you can afford for monthly payments?
If you pay off to your lender with convenience. It will be help full for improve your credit score. Try to pay previous debts.

Thanks.
Icon Mini Profile raymond
raymond
Community Experts
Community Experts


Joined: 03 Jul 2009

Posts: 315
Location: Irvine, CA
60.39 Dollars($)
PostPosted: Wed Oct 14, 2009 9:31 am    Post subject:

Did you do chapter 7 or 13? If it was 7, the bankruptcy will exist in the Public Records section of your credit reports for 10 years. It's reported for 7 years with chapter 13.

2 years of no lates on anything since the discharge and you're eligible for a FHA or USDA home loan.

_________________
Raymond
www.ReverseMortgageCalculator.org
Icon Mini Profile gmakerley
gmakerley
Community Mentor
Community Mentor


Joined: 09 Nov 2007

Posts: 7405
Location: bloomfield, ct
62.63 Dollars($)
PostPosted: Wed Oct 14, 2009 1:09 pm    Post subject:

cindyrae, your payment performance on that car loan will definitely impact your credit scores. you will want to be on-time for every payment and never be late. but you will also want to try to re-establish credit with at least 2 other creditors (store card, visa/mastercard, etc.). having a minimum of 3 favorable credit accounts will have a beneficial effect on your scores. the car, by itself, won't be sufficient to make that big a deal.
_________________
George M. Akerley
Loan Consultant

860-221-5044
Icon Mini Profile thewretched02




Joined: 23 Jun 2009

Posts: 115

23.90 Dollars($)
PostPosted: Thu Oct 15, 2009 8:11 pm    Post subject:

From what I've heard, having a prepaid credit card can help build your score as well.
_________________
Home loan Mortgage refinance information
USA Debt Settlement and Consolidation - You may qualify for a free quote
Mortgage and home loan refinancing resources
Icon Mini Profile gmakerley
gmakerley
Community Mentor
Community Mentor


Joined: 09 Nov 2007

Posts: 7405
Location: bloomfield, ct
62.63 Dollars($)
PostPosted: Fri Oct 16, 2009 10:20 am    Post subject:

about that i'm not so sure, wretched. a secured card definitely makes it into credit reports; whether or not a prepaid card does i simply don't know. for some reason, i'm doubting it, but that may just be me.

i also know that some of the secured card companies are so money-grubbing that their methods give lots of new borrowers trouble, and that definitely gets reflected in credit reports.

_________________
George M. Akerley
Loan Consultant

860-221-5044
Icon Mini Profile sunnyca2009




Joined: 04 Aug 2009

Posts: 1737

36.13 Dollars($)
PostPosted: Sun Oct 18, 2009 2:29 pm    Post subject:

I do not think prepaid card will show up on your report

Not heard of any oen asking for a socail security number, when you buy a prepaid card

Secure credit card will for sure
Icon Mini Profile thewretched02




Joined: 23 Jun 2009

Posts: 115

23.90 Dollars($)
PostPosted: Sun Oct 18, 2009 3:17 pm    Post subject:

hold on a sec, I'm a little cinfused now, the way I've had them described to me, a secured credit card is the same as a perpaid one...I take I've been given incorrect advice on this? (or perhaps I just misunderstood)

Is a secured credit card similar to a secured loan? Does it give the credit card company rights to the security in the even of default?

_________________
Home loan Mortgage refinance information
USA Debt Settlement and Consolidation - You may qualify for a free quote
Mortgage and home loan refinancing resources
Icon Mini Profile sunnyca2009




Joined: 04 Aug 2009

Posts: 1737

36.13 Dollars($)
PostPosted: Sun Oct 18, 2009 6:03 pm    Post subject:

Secure credit card is one, where you put a depost and the they will give you a credit card worth that amount you put in the bank.

you can use the card and need to pay ti back every month on time.

If you default, the bank will take the money what you put in the bank for security
Icon Mini Profile juliastarr25
juliastarr25



Joined: 09 Oct 2009

Posts: 3

1.35 Dollars($)
PostPosted: Sun Oct 18, 2009 7:42 pm    Post subject: It will show up your credit report

Yes a prepaid credit card is a secured credit card. This will be sure to improve your credit card rating. You dont even need much on there. A few hundred will do. Just make sure you pay on time.

Also it will show up on your credit report. They do not need your social insurance number to add it to your credit report list. Your name and address will do.

_________________
Amanda Cluett
Toronto Mortgage Broker
1-877-5-RATES-1
www.bestmortgagerates4u.ca
Icon Mini Profile thewretched02




Joined: 23 Jun 2009

Posts: 115

23.90 Dollars($)
PostPosted: Mon Oct 19, 2009 2:32 pm    Post subject:

Ok I think I get it:

secured credit card = you deposit an amount of money, like a bond into a bank account and get a credit card with a limit of the same amount. Operates just like a normal credit card and you still have to pay back your purchases. you're "bond" doesn't get touched unles you default and then the card company can takeyour bond to clear the debt on the card.

Prepaid card = credit card with amount of preloaded credit, but can never go below $0 balance. once the credit is used up you have to either buy a new one or add more money to it before you can use it again.

Right?

_________________
Home loan Mortgage refinance information
USA Debt Settlement and Consolidation - You may qualify for a free quote
Mortgage and home loan refinancing resources
Icon Mini Profile gmakerley
gmakerley
Community Mentor
Community Mentor


Joined: 09 Nov 2007

Posts: 7405
Location: bloomfield, ct
62.63 Dollars($)
PostPosted: Mon Oct 19, 2009 8:05 pm    Post subject:

precisely
_________________
George M. Akerley
Loan Consultant

860-221-5044
Quick Reply
Your Name
Subject
Message body

All times are GMT - 7 Hours
Page 1 of 1

 
Ask Questions
Community Experts
Cliff Pape - market Analyst Cliff Pape
Market Analyst
Houston, Texas







Highlights
Related Readings
Bankruptcy
Mortgage Loan Modification
Mortgage after foreclosure
Avoid Foreclosure


Helpful References
Mortgage Terms
Mortgage News
Book Center
Mortgage Guide
Shop and Compare lenders


Our Community
MortgageFit Blog
Community Professionals
Community Rewards
Introduce yourself
Website tools


Community Rewards
Five simple ways to earn money with the Mortgage Community.

New and upcoming tools
Credit Repair Tool New
Mortgage Planner
Simple Budgeting Tool






DebtConsolidationCare    Insurance community: We Make You Insurance Smart    CreditMagic: Helping you build up credit


We have chosen to apply the Creative Commons Attribution License to all works we publish. This work is licensed under cc by 2.0