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Profile picture for barbieed

my score low 700, hubby filed bankruptcy dischaged 15 mths how do we build his credit to buy a home

If I add him to my credit cards will that help with raising his credit score?
  • October 21 2009 - Pulaski Industrial Area
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Answers (4)

Great answer Keane.

You may also consider this approach to build more credit.  Go to Equifax.com and order their $99 credit service.  You pay by the month.  You give them any account information that has your husband listed as the obligated party (cell phone, utilities, gym memberships, car insurance,anything with regular payments) as well as cancelled checks for rent paid.  They will verify his payment history with those accounts and put that on his credit report as well as report the information with the other bureaus.  As long as that information is positive, it should help bring his scores up.

 
  • October 22 2009
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Profile picture for Keane Ng
Good answers so far. Especially from Jacqueline.

The mistake I see most people make following a major credit hit, like a bankruptcy, is they do NOT establish credit afterwards. 

Your husband has a good score already for somebody who had a bankruptcy.  If you keep building credit, it will improve as the bankruptcy is older.  You will need 2 years from the discharge before you can buy a home using FHA and longer for conventional. 

I would get some cards in his name right now.  They won't help right now, but when his bankruptcy is 2 years old, the new accounts will help.  Keep the balances low as Jacqueline mentioned.  I prefer even lower, let's say 25%.  Keep the payments on time.  3 tradelines with good balance and payment history following a bankruptcy will do wonders for his credit.

Also, many reports are inaccurate following a bankruptcy.  Be sure to pull one and look for any accounts that have not reported properly after the discharge.  You can get a free report at www.annualcreditreport.com .
  • October 21 2009
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Profile picture for Mr Caveat
Some credit card companies will pull credit and if your credit score has dropped they will raise your interest to the default rate of 29.99%.

as of february that practice will be illegal and there is a bill in the house to bump it forward to dec this year...

i agree that the best option is to rebuild his credit using credit issued in his name... though generally you should keep a balance of ~$100 every month(rather than paying it off) to benefit the most.
  • October 21 2009
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Yes, that can help him but it may hurt you.  Credit card companies have been doing some crazy things to their clients.  Some credit card companies will pull credit and if your credit score has dropped they will raise your interest to the default rate of 29.99%.  You will want to discuss this with them first and go over the pros and cons of adding him to your credit. 

Even though you have been a long time client with the cc company.  If you add him to the account, it will show him as a card holder from the time that he was added to the account, not default to your membership. 
The best thing would be for him to go into his local bank where he holds his checking and savings accounts.  See if they would be willing to issue him a credit card.  Pay everything on time from here on out, and continue to be responsible. 

If he opens a credit card make sure that he does not go over 50% of the offerred line.  Any time that you borrow more than half of your available balance, it can bring your score down.  I am attaching a really good article about credit from the MSN Money site for building credit or start up credit types.

http://articles.moneycentral.msn.com/CollegeAndFamily/MoneyInYour20s/9waysToBuildAKillerCreditScore.aspx

I hope this helps!
  • October 21 2009
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