Q. I would like to purchase a computer. I have all year to pay cash but I need to rebuild my credit after a Chapter 7 bankruptcy filing. Should I pay cash or try to obtain it by secured credit card?

A.While we appreciate your wanting to establish credit by charging a major purchase and then paying for it, we don't advise that you do it with a big-ticket item like a computer.

Secured credit cards can help re-establish credit, but most come with a low credit limit and a pretty high interest rate. What we would suggest is that you take advantage of the "one year same as cash" offer and pay for your computer that way.

Just be sure you have it paid in full within the one-year period. Sometimes if you don't pay off the purchase within the 0% time frame, the company will charge you interest on the balance dating all the way back to the date of purchase. You don't want that.

Use your secured credit card to build credit by making one or two purchases every month and then paying them in full and on time when the bill comes in. You could charge a tank of gas or a prescription that will get you back in the "buy-and-pay" cycle that will establish a good payment track record. Paying your utility bills on time will also help as they are generally reported to the credit agencies that keep track of such things.

Re-establishing good credit doesn't happen overnight, but it will happen if you pay your regular bills on time and charge an item every month and pay it off the next.