Rebuilding credit without credit cards

[flags6262]

We are filing chapter 7 (credit cards and medical) and are keeping our home. We have lived here twenty years and have never missed a payment. We financed a new van in 1999 and made all 60 payments on time. Will our mortgage help our credit score over time as we do not want to have even one credit card?

[gturnwald]

Making payments on time is a good way to rack up a good credit score. But you might also keep in mind that not having credit equals to bad credit in the eyes of lenders. So while it's a good thing not to take on debt if you can afford to, it is actually better for your credit score to keep a credit card on hand even for small purchases. It's usually spending more than your means that is the problem and not the credit card itself. Discipline and perseverance can go a long way to make sure you're not wallowing in debt.

[LawsuitLawyer]

Yes. In general anything major that you make payments on will report on your credit, especially a house, as long as you make all your payments on time.

[riordantroy]

As much as we want to avoid credit card debt, it is prudent to have a credit card at least two. Only through the use of your credit cards to buy small and gas, and you build credit with the passage of time if you pay off credit cards every month. The author makes a great point about secured credit cards. A secured credit card which is funded with your cash, say $ 300. This will help build your credit if you keep your balance less than $ 100 and pay more than the minimum balance before the due date each month. There is a need for more such articles to give consumers and different views on credit.

[esterlydsl]

How have been able to pay all your payments on time which reflects your credibility. Now, that you have decided to file bankruptcy, your lawyer will help you in knowing more about exemption of assets. Moreover, the home is automatically exempted in most of the cases.

[usedcarssales]

Your credit score will be low if you have one. It is never a bad time to start building a better credit history.

You can get a secured credit card no matter how bad your credit is. A secured card requires a deposit and is sometime called a prepaid credit card. You can find a total explanation of them as well as credit building tips at the site below. You should try to establish several revolving credit lines and use them every month.

Be sure to pay the balance in full each month to avoid interest payments. That way it costs you the same as cash but you build positive payment history on your credit report.

After reading about the secured credit cards I recommend you look at the free credit report page on the website to get the link to the credit bureaus where you can get a copy of your report.