How do you fix your credit after a bankruptcy?
Page 1 of 2 12 LastLast
Results 1 to 15 of 20
  1. #1
    Registered User MikeandMattsMom's Avatar
    Join Date
    Oct 2002
    Age
    48
    Posts
    26
    Post Thanks / WTG / Hug
    Rep Power
    0

    Default How do you fix your credit after a bankruptcy?

    My hubby and I filed and its been 1 year since our discharge. Does anyone have any experience with how to start bringing up our credit score or is it just something we have to wait out for 10 years? Is there something we can do to help the process?
    Thanks!

    Lisa

  2. #2
    Registered User Greebo's Avatar
    Join Date
    May 2008
    Location
    Baltimore, Maryland
    Age
    51
    Posts
    8,566
    Post Thanks / WTG / Hug
    Rep Power
    83

    Default

    A bankruptcy stays on your credit report for 10 years. You cannot get it removed - it's a perfectly valid item to have showing.

    More importantly - do you think getting back into debt is a good plan? Because that is the ONLY way to improve your credit score - go into debt.

  3. #3
    Registered User MikeandMattsMom's Avatar
    Join Date
    Oct 2002
    Age
    48
    Posts
    26
    Post Thanks / WTG / Hug
    Rep Power
    0

    Default

    guess we just wait it out then!!! Thanks!

  4. Remove Advertisements
    FrugalVillage.com
    Advertisements
     

  5. #4
    Banned
    Join Date
    Jan 2007
    Posts
    10,457
    Post Thanks / WTG / Hug
    Rep Power
    55

    Default

    Or you could apply for one of those like 200 dollar limit credit cards and use it and pay it off ASAP.

    No, I didn't just say that. I didn't.

    Seriously though. I've known a few people that Bankruptsy seemed to never really affect them...As in trying to bring up their score. It just worked out for them and not going into debt again.

  6. #5
    Registered User Greebo's Avatar
    Join Date
    May 2008
    Location
    Baltimore, Maryland
    Age
    51
    Posts
    8,566
    Post Thanks / WTG / Hug
    Rep Power
    83

    Default

    Oh you can raise your score, sure - the BK will hurt your score for 10 years but you can still improve it over time.

    But again - going into debt didn't apparently work out too well the first time - so why would you want to do it again?

  7. #6
    Registered User MikeandMattsMom's Avatar
    Join Date
    Oct 2002
    Age
    48
    Posts
    26
    Post Thanks / WTG / Hug
    Rep Power
    0

    Default

    oh i definatly DONT want to go into debt. I dont think I can even qualify for a credit card can I??
    Its been a year and it hasnt affected us in ANY way. Im sure that one day before the 10 years is up, we will be reminded of it, but honestly, nothing yet.
    We own our home and we always just pay cash for used cars, have never owned new.
    I just feel like I should be doing something to fix it i dont know maybe its just me??

    How about one of those credit cards where I sent them like 2 or 300 dollars and you borrow against your own money? What are they called? Im thinking secured credit card?
    Would it help much I wonder?

  8. #7
    Registered User Greebo's Avatar
    Join Date
    May 2008
    Location
    Baltimore, Maryland
    Age
    51
    Posts
    8,566
    Post Thanks / WTG / Hug
    Rep Power
    83

    Default

    Listen - the FICO score is simply an "I love debt" score. The only way to get a GOOD FICO score is to go into debt and pay on that debt.

    You have a house. You have paid for cars. You're ahead of the game right now.

    Were *I* in your shoes, I'd forget the credit score - I'd focus first on ensuring financial security for the future, then second on going back to the creditors from the bankruptcy and repaying them anyway. However, you're under no legal obligation to do that - it's just what I would do.

    If you never, ever, ever get into debt again - not for houses, cars, and especially not with credit cards (DANGER, UNSAFE), here is what will happen to your credit score:

    It will vanish.

    Over time, all of the negatives - which are valid - will fall away. In 10 years, you will have "no credit history". You won't exist as far as the lenders are concerned. And you'll have cash in the bank from your savings, a future that looks good, and be beholden to no one.

    **** the credit score.

  9. #8
    Registered User Inkstain82's Avatar
    Join Date
    Oct 2009
    Location
    Missouri
    Posts
    314
    Post Thanks / WTG / Hug
    Rep Power
    14

    Default

    Agreed with Greebo. A credit score is insanely overrated.

    People who are good with money and have a great credit score have a useful tool in their financial life.

    Those of us who have already blown that spend way too much time obsessing over how to get a credit score from "awful" to "kinda bad" or from "decent" to "slightly better." And there's not really any payoff.

    You might pay a little more for insurance, but you can avoid that if you shop around.

    Otherwise, there's no downside to a bad credit score if you don't plan on taking on debt. Yes, theoretically you can be denied renting a place to live, but I've never known a landlord who wouldn't accept a large amount of cash in advance instead. Yes, you can theoretically be denied a job for your credit score, but I've never known it to actually happen to anyone who wasn't applying to work directly with money.

  10. #9
    Registered User suebeehoney's Avatar
    Join Date
    Jun 2008
    Location
    a little country town, Michigan
    Age
    50
    Posts
    264
    Post Thanks / WTG / Hug
    Rep Power
    14

    Default

    The best thing you can do is simply pay everything on time, and DON'T RUSH BACK INTO ANYTHING.

    You may find that you get a bunch of credit card offers in the mail after your bankruptcy is discharged - don't fall for it. These companies are COUNTING on your desperation for credit, and hoping you will apply, apply, apply for those cards. Don't do it. Wait and bide your time until your credit improves and (if you must) get a card through your credit union with a low interest rate. Then charge a little and pay it off - every month - on time. That will show that you have the willpower to control your spending, and that you are a good steward of your credit...and your score will slowly rise.

    But I do agree with others here - if you don't absolutely need credit (like for a house or car), just deal in cash on the barrelhead...like the old days. The result? Maybe your credit score won't go up, but you also won't be in debt up to your ears.

  11. #10
    Registered User Greebo's Avatar
    Join Date
    May 2008
    Location
    Baltimore, Maryland
    Age
    51
    Posts
    8,566
    Post Thanks / WTG / Hug
    Rep Power
    83

    Default

    Quote Originally Posted by suebeehoney View Post
    But I do agree with others here - if you don't absolutely need credit (like for a house or car),
    GAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAH!!!


    You DO NOT NEED credit for a CAR!!!

    Greebo bursts an artery...

  12. #11
    Registered User Mom2-3's Avatar
    Join Date
    Jun 2008
    Location
    Here;)
    Posts
    867
    Post Thanks / WTG / Hug
    Rep Power
    15

    Default

    I would do the secured credit card. You can go through your local bank or credit union. They usually have a $500 limit.

    Paying your debts on time (house and car) will also raise your fico score slowly.

  13. #12
    Banned
    Join Date
    Dec 2009
    Posts
    27
    Post Thanks / WTG / Hug
    Rep Power
    0

    Default

    Quote Originally Posted by Inkstain82 View Post
    Agreed with Greebo. A credit score is insanely overrated.

    People who are good with money and have a great credit score have a useful tool in their financial life.

    Those of us who have already blown that spend way too much time obsessing over how to get a credit score from "awful" to "kinda bad" or from "decent" to "slightly better." And there's not really any payoff.

    You might pay a little more for insurance, but you can avoid that if you shop around.

    Otherwise, there's no downside to a bad credit score if you don't plan on taking on debt. Yes, theoretically you can be denied renting a place to live, but I've never known a landlord who wouldn't accept a large amount of cash in advance instead. Yes, you can theoretically be denied a job for your credit score, but I've never known it to actually happen to anyone who wasn't applying to work directly with money.
    I also believe it can be hard to get a bank account if your credit score is bad but I'm not sure.

    I really think it's complete discrimination to deny someone a job because they have bad credit unless they are apply for a job as a brinks driver or casino worker or something.

    As far as renting, I would think if you have strong references and past landlords who will vouch for you and let prospective ones know you never missed a rent payment or were late you would probably be just fine.

    I think credit scores are highly overrated. Once we get ourselves out of this mess we we never touch a credit card again. It's cash or nothing. Debt sucks hard.

  14. #13
    Registered User joyofsix's Avatar
    Join Date
    Aug 2005
    Location
    IN
    Age
    58
    Posts
    2,018
    Post Thanks / WTG / Hug
    Rep Power
    27

    Default

    I was going to launch, but Greebo and Inkstain beat me to it. If you're not going to borrow you don't need a credit score. Easy peasy. Dh and I only owe on the house so we look great but once it's paid off we'll look terrible at 0 and nothing will have changed so what good is it anyway?

  15. #14
    Registered User Contrary Housewife's Avatar
    Join Date
    Mar 2007
    Location
    Kansas City
    Posts
    9,280
    Post Thanks / WTG / Hug
    Blog Entries
    75
    Rep Power
    62

    Default

    It is not hard to open a bank account with bad or no credit. If it was, teenagers and college students would never be able to get accounts. All banks are happy to take your deposit. It may be tough to get a loan without collateral, though.

    I also think the chances of being denied a job from bad credit are pretty slim in most cases (govt jobs and jobs dealing with money aside). DH has gone through several background checks (where they ran his credit and checked his police record) and never had an issue landing a job in the 7 years since we defaulted on our CCs. He's also got late taxes and non-payment of child support (both since taken care of) on there.

    Most employers never actually bother, even though it says on the application that they will do it.

    IMO "credit scores" are just a way for companies to prey on nervous and gullible consumers and sell them useless monthly reports.
    Stop trying to organize all of your family’s crap. If organization worked for you, you’d have rocked it by now. It’s time to ditch stuff and de-crapify your world.

    If you're not using the stuff in your home, get rid of it. You're not going to start using it more by shoving it into a closet.

    Use it up, Wear it out,
    Make it do, Or do without. ~unknown

    Because we, the people, have the power to build a better future. KH

  16. #15
    Registered User Inkstain82's Avatar
    Join Date
    Oct 2009
    Location
    Missouri
    Posts
    314
    Post Thanks / WTG / Hug
    Rep Power
    14

    Default

    Quote Originally Posted by BerryWriter View Post
    I also believe it can be hard to get a bank account if your credit score is bad but I'm not sure.
    Banks use a separate system known as "CHEX" to keep track of people who have had bank accounts closed with negative balances.

    Inkstain
    (who unfortunately knows this one the hard way)

Page 1 of 2 12 LastLast

Similar Threads

  1. Credit Score and Reported Credit Card Limits
    By telephus in forum Debt Reduction & Money Management
    Replies: 1
    Last Post: 09-16-2006, 02:43 PM
  2. Bankruptcy....
    By homesteadmamma in forum Frugal Living
    Replies: 7
    Last Post: 01-07-2004, 11:19 PM

Tags for this Thread

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •