Syringa Realty-Idaho Real Estate

2012-11-16T23:26:00.001-07:00

How to Rebuild Credit After Bankruptcy

Written by admin on November 15, 2012 - 0 Comments
Categories: wikihow

How to Rebuild Credit After Bankruptcy

Don’t despair if you have wrecked credit after filing for bankruptcy––you can take measures to rebuild it. Here’s how to get your finances together, whether you’ve filed bankruptcy or you just need help stabilizing your money.

Edit Steps

Open a new checking and savings account. If you do not already have both a checking and a savings account, open one of each at a local bank or credit union. To choose a bank or credit union:
- Compare the interest rates and fees of all financial institutions between your residence and place of employment, or if you are unemployed, within ten (10) or fifteen (15) miles of your home.
- Consider the various services each bank provides, and the likelihood you will want or need each of them. A bank with many different services you will never use may not be the best choice for you.
- Talk to friends and family members about their banking institution; find out if they are happy with the interest rate, minimum deposit requirements, fees, and service they receive, and if they would recommend that you use the same institution.
Get a secured credit card. Once you have a little money put away, you can put some of it toward a secured credit card. A secured card functions essentially like a debit card in that you pay the bank the money beforehand, but your payments should be reported to all three major credit bureaus and go toward pumping up your credit score.
- Start with around $500. As your credit improves, ask the bank if you can slowly start raising the limit.
- Be wary of anyone that asks you for outrageous start-up fees (some places try to charge up to $200) or for you to call a 1-900 number that will charge you money.
- Be sure to ask if your transactions will be reported to all three major credit bureaus. You want them to see that you’re paying off your debts so your score can begin to improve.
- Know that some banks might force you to wait for a year after you’ve filed bankruptcy to get a secured card. If that’s the case, focus on building up your savings in the meantime.
- Get a secured card at a bank you want to continue to use for awhile. You’ll eventually want to ask if you can switch to an unsecured card with the same bank, so choose wisely.
Get a retail or gas credit card. When you’re back on track with a secured card, you can try applying for a retail or gas credit card. Keep these points in mind when you’re looking into it:
- Make sure your transactions will be reported to all three credit bureaus. Remember, the point of all this is for them to see you being responsible with your money.
- Avoid huge start-up fees.
- Try to get a card at a store where you won’t be tempted to go on a shopping spree. Gas cards are a good idea because gas is a necessary expense you won’t be tempted to splurge on. Try to avoid department stores that might tempt you with expensive items that are out of your price range.
Pay off your balance every month. You might have heard that carrying a balance is great for your credit score, but that’s not necessarily true. Especially if you have bad credit, the credit bureaus want to see that you’re capable of paying off the balance as often as necessary. Only buy what you can afford at the end of the month.
Get copies of your credit report from all three major bureaus. You can get one report a year from each bureau for free. Figure out where you are now, and where you’d like to be in two years. This can help you evaluate how drastically you need to restructure your finances. The three bureaus are:^[1]
- Equifax: 800-685-1111
- Experian: 888-397-3742
- TransUnion: 800-888-4213.
- Mark the date on your calendar when you can get another round of free credit reports next year. Consider that your appointment for checking your progress.
Pay your bills on time. If you tend to be late paying your bills and incur late fees, now’s the time to stop. Draw up a calendar with all of your due dates (or enter it into your phone), and check it religiously. Make sure the money is ready ahead of time, and try to mail payments or do online transfers a day or two ahead of the deadline.
- Getting into the routine of paying your bills consistently can help you break some of the bad financial habits that contributed to your bankruptcy. Accept that it might be a difficult adjustment, but it’s what’s ultimately best for your bank account.
Dispute incorrect information on your credit reports. Make sure you follow up with any reporting agency who lists incorrect information on your credit report or who continues to allow discharged debt to appear on the report. To dispute incorrect information on your credit report listed by the bureaus listed above, you can use the online dispute form on Equifax, the credit maintenance services page on Experian, and the dispute section under the personal services category on TransUnion.
Budget for essentials. Sit down and figure out how much money you absolutely must spend every month. Try to be as strict as possible when it comes to differentiating between needs and wants––for instance, you might want unlimited texting but you don’t need it to live. Once you know how much money you need to live, you can start figuring out how to leverage the rest of it toward rebuilding your credit. Here’s a list of musts for most people:
- Housing/shelter. You probably have to pay rent or a mortgage every month. If what you’re paying currently is too high, you can look into more affordable housing.
- Food. Realistically estimate how much money you spend on food every month, including both groceries and dining out. If you need to cut that number down, consider eating at home and packing a lunch more often.
- Utilities. Water, trash, electricity and/or natural gas bills are usually unavoidable.
- Communications. You probably need access to a phone, whether it’s a land line or a cell phone. If your mobile bill is eating a big chunk of your money every week, see if you can downgrade to fewer minutes or a smaller data plan.
  - Most people probably wouldn’t consider cable or internet access absolutely necessary to live. If you need to get online but you can no longer afford access at home, try using the WiFi at your local library or coffee shops.
- Transportation. Whether it’s a car, a bike, or a bus pass, you probably have to spend money to get around. If you have a car, figure out the monthly costs for gas, insurance, maintenance, and registration.
- Medical expenses. If you have a chronic condition that requires regular doctor visits or medication, be sure to note these costs. You could also include how much money insurance costs you every month.
Use your remaining money to rebuild your credit. Whatever you have left over after you pay your living expenses can be used to rebuild your credit and purchase items that aren’t absolutely necessary (such as entertainment, gifts, etc.).
- Here’s the rationale: You shouldn’t ever be paying basic living expenses on credit. Using it to pay your rent or buy groceries is the path to revisiting disaster if you suddenly find yourself strapped for cash again. Gas is the only “necessity” that should ever be bought on credit during your rebuilding process, and then only using a gas card that’s reported to all three credit bureaus.
- Additionally, this keeps rebuilding your credit from becoming a matter of life and death. If it’s just something you’re doing on the side, after your basic living expenses are paid, you won’t feel so crestfallen if a bank or credit agency denies you.
Build a small cushion in savings. Whenever you can, throw a bit of money toward a savings account reserved for minor emergencies. That way, if you suddenly have to drop $600 on urgent auto repairs or a medical event, you don’t need credit to do it.
- Start small. Most financial experts recommend having enough money in savings to cover 6 months of expenses, but that’s a little extreme for your current situation (though you can make that an eventual goal). For now, just put aside whatever you can spare and aim to get up to between $500 and $1000.
Avoid finance companies. Remember, finance companies exist to make a profit. Instead of being swayed by debt consolidation offers, focus on maintaining your budget, putting money into savings, and slowly building up the limit on your secured card or retail card.
Ask when you can upgrade to an unsecured card. If you’ve successfully managed a secured card for more than 12 months, consider asking your bank if you can switch over to an unsecured card. Most banks will agree to letting you have a low-limit unsecured card after 12 to 24 months.
- Keep the same mentality you had with the secured card. Avoid spending money you don’t have on the unsecured card so that you can keep yourself from sliding into bankruptcy again.

Edit Tips

Seek professional help. The National Foundation for Credit Counseling can offer free or low-cost help if you’re trying to rebuild your finances. Start here: http://www.nfcc.org/FirstStep/firststep_01.cfm.
Don’t give in to shame. Fight the instinct to punish yourself for having bad credit, and instead focus simply on what you’re doing to improve. Remember, lots of people have walked this path before you. If they can make it, you can too.
Try to do most of your business through one bank, through which you have a checking account, savings, and a credit card. Being a member in good standing with one bank can help you get access to better account perks later on.
Track your spending with the help of an online banking app or website. Look for one that you can attach to your bank account and credit card, so you can see exactly where your money is going and budget accordingly.

Edit Warnings

A large number of inquiries on your credit report can have a negative impact on your credit score. Therefore, you should not apply for every credit card or loan offer that arrives in your mail or inbox.

REDFISH LAKE One of the Top Ten most Beautiful lakes in the WORLD

2012-09-10T18:49:00.000-06:00

Life is good in Idaho. Guess what we did last weekend?About 45 minutes from Sun Valley and 2.5 hours from Boise.It doesn't get much better. See more of Idaho Real Estate visit us on FaceBook.

Rich and famous are mere mortals in soft real estate market – USATODAY.com

2011-09-30T09:22:00.000-06:00

Rich and famous are mere mortals in soft real estate market – USATODAY.com

Private Client Services

2011-09-13T11:04:00.000-06:00

Private Client Services

Syringa Realty-Idaho Real Estate: New El Paseo Home

2011-09-13T00:02:00.000-06:00

Syringa Realty-Idaho Real Estate: New El Paseo Home

New El Paseo Home

2011-09-13T00:01:00.002-06:00

You Gotta know when to hold em and when to fold em !!

2011-06-27T14:37:00.003-06:00

Former Estate of Kenny Rogers Hits the Market for $20 Million

Courtesy of Jordan Blakesley of Voca PR

Beaver Dam Farms, built and designed by country music legendKenny Rogers, is an expansive 973-acre private estate tucked away in the rolling foothills of Athens, Georgia, on the original site of one of the state’s grandest plantations. Just listed for $20 million, this luxurious, fully-furnished estate features a 12,000 sq. ft. main house complete with two gyms, a movie theater, a billiards room, and an Italian marble wraparound porch. For guests, the estate also offers a six bedroom guest home, a four bedroom guest home, and four one bedroom villas. Purchased from Rogers by the Wes Adams family in 2003, Beaver Dam Farms still includes Rogers’ (an accomplished interior designer and one-time partner in an Atlanta design firm) one-of-a-kind design and many of his original furnishings.

The centerpiece of Beaver Dam Farms is a private (as in, only for the owner - there are no members), 6,285 yard, 18-hole executive championship golf course that Rogers designed after years spent traveling to play some of the world’s best, and is often compared to world-renowned Augusta National. The course has played host to golfing greats Payne Stewart, Lanny Wadkins and Ray Floyd, as well as many of Rogers’ celebrity friends. The estate also includes a clubhouse, a 90,000 sq. ft. state-of-the-art equestrian and multi-use facility, two barns, a lake house, two swimming pools, clay tennis courts, a spa, conference center, various outdoor entertaining venues and three fish-stocked lakes.

2011-06-21T13:57:00.000-06:00

Wells Fargo Stops Reverse Mortgage Loans

Wells Fargo Home Mortgage announced that it will stop taking applications for new reverse mortgage loans by the end of the month due to the unpredictable nature of home values.

Reverse mortgages generally are sold to those over age 62 who want to tap into their home equity to pay for personal expenses like medical bills. Reverse mortgages don't have to be repaid until the home owner sells the property or passes away, which is how it differs from home equity loans.

The company will continue to service customers who already have existing reverse mortgages, but will no longer take new applications as of June 30.

Wells Fargo joins a growing number of banks that are getting out of the reverse mortgage origination business due to the sluggish real estate market, which has made it more difficult for banks to determine home values and how much they should lend in the reverse mortgages. Bank of America announced in February that it also would stop processing new reverse mortgage loans.

Source: "Wells Fargo Home Mortgages Halts Making Reverse Mortgages, Cites 'Unpredictable' Home Values," The Associated Press (June 16, 2011)

I say good bye, adios, so long, far well and not sad to see you go to reverse mortgages and the banks who have preyed upon the desperate and sometimes Naive home owners.
This is probably the only upside to the collapse of the housing market. I personally have no sympathy for the big banks who invented but another way to prey upon the elderly. I hope these Banks loose every last dime on every reverse mortgage they originated. Maybe next time they will think twice. If you see an upside or a positive to reverse mortgage I WOULD LOVE to hear about it, feel free to post

Top 10 things you will NEVER hear a Syringa Realty agent say

2011-06-07T15:14:00.000-06:00

1. Winner Winner Chicken Dinner
2. What do we have to do to get you into a house today
3. Hmmm Never seen that before
4. Hey I just got my real estate license
5. You know it just so happens that I also sell insurance
6. Don't worry it will work itself out
7. I am on the work release program
8. Lets not put it in writing
9. Thanks for the listings, talk to ya in 3 months
10. I cant sell your home

Real Estate is "local" and I dont mean crazy

2011-06-05T16:59:00.000-06:00

After several months of strong job growth, hiring slowed sharply in May, raising concerns once again about the underlying strength of the economic recovery.

The Labor Department reported on Friday that the United States added 54,000 non farm payroll jobs last month, following an increase of 232,000 jobs in April. May’s job gain was about a third of what economists had been forecasting.

The unemployment rate ticked up to 9.1 percent from 9.0 percent in April. Home prices won't rebound until jobs come back. But jobs won't come back until the housing mess gets fixed.

That's a problem because both the housing market and the broader economy are having trouble getting back in gear. Hiring is losing steam, and after home values hit a post-boom low, many are projecting further price declines.
Even with all the negative news, one thing to remember is people must have a place to live- a house- an apartment -a condo. The housing demand will always be there it is just a matter of at what price.

Real estate is local and therefore different than other investments, like stocks or bonds. A home in Idaho may be worth twice as much as a similar style and size home in Indiana.
It is important to remember that local economic conditions will affect local real estate more than national economic conditions. Don't get me wrong it is still important to track nation statistics and indicators just not as important as local.
Jobs are local, schools are local, factories are local, government is local and all have a different economic impact, positive or negative for different areas of the country.

Since real estate is a local investment it is important to work with a real estate professional who is also local and familiar with the areas economic conditions and indicators. Work with a well educated agent who is connected to the community and can give you some insight on areas past, present and future economic performance.
Don't let the national news affect your decision to invest in an area you feel safe, after all you have to live somewhere, just be sure it is somewhere you enjoy

Syringa Realty requires all of our agents to have a bachelors degree or a profession real estate designation in order to work for the firm so our clients can be assured that they are working with the some of the most knowledgeable and passionate agents in the country.
Check back as we talk about the local Idaho economy and some for my predictions for the real estate market ahead.
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