building up credit

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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.

adonis · Posted: 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.

gunzijjistaff · Joined: 07 Apr 2009 Posts: 454 6.41 Dollars($)

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.

raymond · Posted: 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.

gmakerley · Posted: 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.

thewretched02 · Joined: 23 Jun 2009 Posts: 115 23.90 Dollars($)

From what I've heard, having a prepaid credit card can help build your score as well.

gmakerley · Posted: 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.

sunnyca2009 · Joined: 04 Aug 2009 Posts: 1737 36.13 Dollars($)

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

thewretched02 · Joined: 23 Jun 2009 Posts: 115 23.90 Dollars($)

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?

sunnyca2009 · Joined: 04 Aug 2009 Posts: 1737 36.13 Dollars($)

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

juliastarr25 · Joined: 09 Oct 2009 Posts: 3 1.35 Dollars($)

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.

thewretched02 · Joined: 23 Jun 2009 Posts: 115 23.90 Dollars($)

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?

gmakerley · Posted: Mon Oct 19, 2009 8:05 pm Post subject:

precisely

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