Rebuilding Credit-How much/many accounts?

[BK2008]

I have 2 credit cards that survived BK so far:

Firestone $1000cl
RBS $10000cl.

I have only used them for very small things (oil change, tank of gas), pay them off as soon as the statement arrives

I also have an auto loan with a $6700.00 balance.

Is this enough credit to help me reestablish over time??

I don't want/need to open accounts I have no use for for the sake of FICO.

Please advise, this confuses me.

[AngelinaCat]

Pay on time and the full amount each statement. That should help you re-establish credit. Also make your auto loan payment on time. Please do not open any more accounts, and other than checking your credit reports to make sure there are no errors, I wouldn't worry about FICO and just go on and live life.

[BK2008]

Thank you! I hate opening accounts just for the sake of accounts.

Like a gas card....if I have a Master, why do I need a gas card??
And Firestone comes in handy in case of a car repair that I don't have all of the cash for. Pay some, charge some.

[Stilltheone]

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[BK2008]

Well, I COULD use a Goodyear, too

Firestone is 3 doors down the street from me at work, and it is just too easy to dor the car in the AM for service and pick it up. On the other hand, Goodyear is a little further down the street on the opposite end...

I pay the bill on their website, so late is not a problem.
And all looks well on my credit report, as far as they go.

[FHAinfoCenter]

Never incur debt to have a higher FICO. I wouldn't worry to much about your FICO score. Just pay the bills you do have on time and DON'T keep a balance over 30% of the limit on your revolving accounts and it will go up over time.

IF you plan on getting a home loan you will be fine once you are two years discharged as long as you are not late between now and then and your income is sufficient. If you are renting SAVE the canceled checks for proof of rent payment.

Best of luck to you!

[Stilltheone]

Well, I COULD use a Goodyear, too

Firestone is 3 doors down the street from me at work, and it is just too easy to dor the car in the AM for service and pick it up. On the other hand, Goodyear is a little further down the street on the opposite end...

I pay the bill on their website, so late is not a problem.
And all looks well on my credit report, as far as they go.

We HAD a Goodyear. They get so darn picky when you declare bankruptcy. UH! The nerve...LOL

We didn't pay late on our Firestone either, but they kept reporting us as paying 30+ days late. Just something to watch out for. It took us forever to get it removed from our credit report.

[HopeFaith]

One bit of advice... I've worked in the mortgage industry for years, and can vouge that the key factor in being approved for a home loan after bk is having re-established credit after the discharge.

Unfortunately, any accounts that survived the bk aren't considered. Lenders are looking for fresh accounts post-discharge, with no derogs. Typically 3 new accounts are preferred. This reflects our ability to rebound from financial hardship.

[Flamingo]

I would be very careful with the two surviving cards for a while in case they do get closed out. If they are tied to any major banks (i.e., Chase, Citibank, WFNNB), the chances they will get closed out are very high. I don't know when you filed but it could take several months yet before you could be free and clear of them being closed out. Until that time, only use them for small purchases and pay them off immediately.

Time is your only friend after discharge as to credit. Going out and opening more credit as soon as possible after discharge is not a good thing as most get denied and run up hard inquiry after hard inquiry on their credit reports which sit there for two years. For the years after discharge, pay everything on time (utilities even) and do not be late with anything. Your BK will work against you for 10 years on your credit report. You have to show you are beyond that and it does take time....

[BK2008]

I would be very careful with the two surviving cards for a while in case they do get closed out. If they are tied to any major banks (i.e., Chase, Citibank, WFNNB), the chances they will get closed out are very high. I don't know when you filed but it could take several months yet before you could be free and clear of them being closed out. Until that time, only use them for small purchases and pay them off immediately.

Time is your only friend after discharge as to credit. Going out and opening more credit as soon as possible after discharge is not a good thing as most get denied and run up hard inquiry after hard inquiry on their credit reports which sit there for two years. For the years after discharge, pay everything on time (utilities even) and do not be late with anything. Your BK will work against you for 10 years on your credit report. You have to show you are beyond that and it does take time....

So when the time comes (and that wound not be right now), what kind of credit would I need to reestablish?

I don't want to buy a new car, so that's out.
I am never going to buy a home again, so that is out.

The only thing left...is credit cards? Personal lines of credit? Or?

The 2 cards that I have are not tied to the national banks, and I believe they are well aware of the BK, because I lost one of my cc's, and they sent me a replacement, just right after my Bk discharged. So who knows, it could get closed out, or not. I put a tank of gas or 2 on it, wait for it to statement so it will report, and pay it in full.

[Flamingo]

So when the time comes (and that wound not be right now), what kind of credit would I need to reestablish?

I don't want to buy a new car, so that's out.
I am never going to buy a home again, so that is out.

The only thing left...is credit cards? Personal lines of credit? Or?

The 2 cards that I have are not tied to the national banks, and I believe they are well aware of the BK, because I lost one of my cc's, and they sent me a replacement, just right after my Bk discharged. So who knows, it could get closed out, or not. I put a tank of gas or 2 on it, wait for it to statement so it will report, and pay it in full.

The BEST thing for you to do right now is just do what you are doing and keep paying whatever bills you still have on time. Just do not be late with anything. How you conduct yourself now and over the next several years is what will determine your future credit. Since you have two open cards right now and an auto loan, and have no need for any credit, just be prudent with those and anything else. If you don't need credit, don't apply for it. Time will take care of the rest of it for you. Your credit reports that way will be free and clear of numerous inquiries for credit and you don't run the chance of denials either. You should be fine - best of luck to you!

[BK2008]

Thank you. My thinking is if I wait until February of 2009, the only inquiry I will have on my credit report is from my auto loan I got in January 2008, and an inquiry from a creditor from June 2007. Everything will have pretty much fallen off by then. (I did not do a run on credit at any period over the last 2 years.)