I had excellent credit for a long time and then some events came up that were out of my control and involved my family. I ended up filing for Chapter 7 bankruptcy. Found a great attorney, all fees were paid. Took my credit counseling course, then filed in late April… Had my trustee hearing on May 27th. I took my second course required for the discharge. Now I'm just waiting on a discharge letter itself, which apparently can take a couple of months or more.
Do I have to wait until after I receive the actual discharge letter in order to build my credit back up? I had more than one credit card previously. I basically just want to re-establish my credit and get one secured credit card, which apparently will turn into a regular credit card within 6 months or so of good payment history and reasonable usage. My financial situation is getting better with time and pay rate will be going up (doubling within 1-2 years) as I keep advancing in positions at work, so I don't want to lean on a credit card any longer, even for emergencies. However, I'm more concerned about my future of being able to get a mortgage when I want my own house, say…4-5 years down the road. I would be saving up for it and making a large downpayment. But I would still want the best credit that I could have.
Is one credit card enough to re-establish good credit for a future mortgage? I don't want or need more than one.
Added (1). At what point should I try to apply for the said secured credit card? Is it an absolute must that I wait until after the discharge letter before I apply for one?
I'm getting all sorts of "we can help you get a new car!" letters. I don't want a new car. I have never owned a new car and I live moderately and frugally. I prefer cash only, but I want a card to re-establish credit and have just in case of emergencies. Though I will be saving for those, as well.
Added (2). Love big words - Do you have a mortgage? If so, bad credit would cost you MORE to pay for that mortgage. Therefore, good credit must be re-established and is needed for nearly everything. Whether renting an apartment, getting a cell phone service or whatever. It is necessary. Take your "Dave Ramsey" crap somewhere else. That guy is a millionaire by getting money from people like you.
Read more: Re-establishing credit after Chapter 7? How much is enough?