How do you fix your credit after a bankruptcy?

[Inkstain82]

Also, shop around *hard* to find a good deal on a secured credit card if you really want one. The major issuers will have them, but with ridiculous fees. I'm not going to give them $500, and get a $500 credit limit back with a $69 annual fee and a $49 account origination fee.

[scottp999]

My friend just did a Short Sale and was 4 payments behind when it finished. Her credit score took a nice hit. Now that her housing expenses are down, she is able to put cash into an emergency fund each month. Her car is in good condition. By the time she needs a new car in 5 years, she should have cash for it. She did not go the bankruptcy route because she had no unsecured debts, just the mortgage. Right now, rent and utilities are her only bills.

She is learning to become her own lender. Forget the banks if you can! It is hard to do! Good luck.

[Vegas1980]

I am actually speechless!!

I just posted in the Envelope budget system forum about my WHOLE dilemma. And honestly, it boiled down to my credit score.

I was so focused on that score that I forgot something...I don't want to go back into any kind of debt once I get my life (finally) figured out financially.

I do need to pull myself out of this...GINORMOUS hole though. THAT is important. That number does not determine my status in life!

[Anna43]

I wish the insurance companies would not check credit scores to determine rates. Because we're debt free we have a low credit score. So our car insurance company "rated" our policy. We've been with this company longer than most of you have been alive (1959) so it really ticked me off. What we've done is each of us have credit cards that we use for regular purchases and pay off each month. We've been doing this for 2 years so I'm going to ask the insurance company to check again and hopefully reduce rates.

As the economy changes to more and more people seeking to live debt free, I'm hopeful companies will change their way or "rating" us.

[Greebo]

If the worst thing that happens to us from eventually having a ZERO* credit score is slightly higher premiums on our insurance, so be it. The peace of mind from having money in the bank and not having collectors at our heels is worth it.



(*technically a score that cannot be evaluated due to insufficient data - no such thing as a zero)