What is the best route to purchase home after bankruptcy?

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Q. I filed bankruptcy on November 2000. Since then, I have been up to date with all my bills. I have no credit cards right now. I am 26 years old and will be hurting credit-wise over the next couple years. But I would like to know what I should be doing in order to build good credit again, other than just paying my bills. What period should I wait before I start asking for the first credit card again? (Yes, I will be careful this time) My goal is to purchase a home. (I know, it will be very tough right now, I just want to prepare) Would renting out at an apartment and paying the rent on time help much or not really? I am living at my parent's house and taking technical classes and am receiving unemployment right now. I will start working sometime in July of this year. Is there anything I should keep in mind in order to rebuild my credit and make it look good again? Any recommendations would be appreciated.

A. I am not an authority on this but I read this to build good credit. Go to a bank and ask to take out a small loan, tell them you don't want to take the money with you, you want to leave it in an account and make the payments on the loan, this way there is no risk to the bank, then pay the small loan off early. That way they will credit you with paying it off early. After you have paid that small loan off, open another loan the same way, make a couple of early payments, then pay it off with the original loan you left in the bank, now you have 2 good credit instances from a bank. Paying your bills or renting will not show up on a credit report. There are only 3 things which will help you in being approved for a mortgage after bankrupcy. They are: 1) Paying off loans and other credit (these will show up on a CB check) on time. This is difficult because you will now generally not be approved for a loan. 2) Creating savings (for the down-payment) and investing it at the bank from which you plan to borrow. 3) Paying back the loans you defaulted on or included in your bankrupcy. This will show your strength of character and that you were genuinely using bankrupcy as a last resort and not simply using the system. Make sure that the institutions record this in every conceivable way and that they report it to the credit bureau (sit in their office while they make the call).

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