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  • Edward G. Topolski

Ways to increase your credit and rebuild your financial life after bankruptcy !


This week one of my clients that recently received their chapter 7 bankruptcy discharge stopped by to talk about whether or not financing a new car would help rebuild their credit score. After one of my clients gets their discharge i always invite them to come in to talk about rebuilding their credit so they have a good plan.


Right after their bankruptcy petition was filed they received a letter in the mail from a Honda dealer offering to sell them a new car and finance the purchase. Since they were debt free after their bankruptcy discharge was entered they figured they could afford a new car and making the monthly payments on time would help improve their credit score. They went to look at the brand new Honda accord with all the options and the payment was going to be $545.00 per month for 72 months which they could afford now that they were debt free. Sounded pretty good to them...


When we started talking about the deal they told me that the Honda dealer explained to them that every month they made the $545.00 payment on time would help improve their credit score and rebuild their credit which is generally true. I explained to them that the interest rate for the car loan was pretty high because of their bankruptcy discharge which was something the Honda dealer didn't mention. i suggested they look at a less expensive Honda which would still be a brand new car with a loan that if paid on time would help rebuild their credit. i explained to them that whether the monthly payment was $545.00 or $350.00 per month making the new car payment on time would help improve their credit score either way.


When they figured out they could buy a new Honda with a $350.00 monthly payment, which if payed on time would still build and improve their credit score, and at the same time they would have $195.00 per month to save for a rainy day ($545.00 payment less $350.00 payment = $195.00 per month to save) that looked pretty good to them. The bottom line is the amount of the monthly payments is not important as making the monthly payments on time to improve your credit score.


If you have any questions or need some help with legal matters please feel free to give me a call (951)765-0331

for a free consultation. I may not tell you what you want to hesar but ill tell you what you need to hear.

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