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My husband's Chapter 7 BK


racehorse
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My husband declared Chapter 7 bankruptcy back in 2003. His credit scores are in the high 600s/low 700s. He has had no issues with late payments at all since his BK.

How long will it take until his scores are in the 750 range? We want to buy a new house within a couple of years and are both working through our credit problems--I am working with Bud Hibbs for my issues. I've been told we need to be in the mid-700 range in order to get decent rates.

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It all depends. His scores won't rise that high just because time has passed. There needs to be immediate affirmative steps taken. For instance, how many years of new credit cards and loan payments with perfect payment history does he have? There are some who followed the methods laid on this site who had +700 scores within 24 months of discharge. Others are 10 years past their discharge date and still have scores in the mid 600s.

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He does have some credit cards now--maybe 3 or 4. We are careful to keep the balances low, although one was at the limit for about six months before we paid it off. Should he be trying to get more cards? He has no car loan and his name is not on our mortgage.

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I would not add car loand or mortgages for credit repair. Use a credit union and have him open a secured installment loan. One of the components of the FICO score is mix of credit types. When you only have revolving accounts, you are penalized. An installment loan should help. And it costs you virtually nothing (and forces him to save money- a good way to get a down payment together).

Just make sure the credit union reports to all three credit bureaus. And never, never, never miss a payment on nay debt owed. It seems post-BK lates are complete score killers.

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