2 years after discharge

[Logan]

Hello everyone.

Yesterday was my 2 year discharge anniversary date and I thought I'd pass on a success story for anyone who is curious.

At this time I barley even feel as if I declared BK. I have all the credit I need and when I do apply for credit I am only denied by the creditors who don't extend credit to people with previous BK's. GE Capital, AMEX, Chase (although I have a Chase CC from WAMU).

My FICO's were last checked 4 months ago and my mid score was 684 but my identityguard scores have risen since then. I use identityguard through costco to monitor my activity since it is $7.95 a month.

At this time I have 4 credit cards for 7k, 3.5K, 1.1K and $500. A few weeks ago I applied for a Jared Jewlers card and was approved for 11K and I have a dell card that survived the BK for 4K.

I have also been approved for a mortgage but just backed out since the seller's bank has been sitting on 3 offers for months and I couldn't wait any longer. I have also been approved for 2 car loans but I never took advantage.

I just signed a lease for renting a house at 2k a month and the realtor didn't give a crap about my BK since it was 2 years old. I just moved 1500 miles I have had my credit run numerous times but noone has batted an eye not even the mom and pop store supplying my propane gas for winter heat.

My recommendation to everyone wanting to reestablish credit is to work on getting a CC quickly. Use it sparingly and let a few months pass which will allow more time for some sort of credit history to begin accumulating. I would then apply for a card 3 to 6 months later for a card recommended to be BK friendly or one from the solicited mail. Once these steps have been taken then you will be well on your way to reestablishing credit.

Also, form a guy who used to be in the mtg business and has experience with credit reports, I recommend not worrying about your credit score. Once you have a new credit card or car loan etc. your credit will improve if you pay on time. The media is making Americans obsessed about their credit scores thanks to commercials and people like Suze Orman (who makes money from FICO.com). Turn on the TV and you'll see an add about how you're living in your parents basement because of your girl friends bad credit or when you pop up yahoo home page a credit score add is right in front of your face. FORGET about your score and live your credit report life responsibly and you will reestablish your credit.

Two more things that bug me about what people write. If you have an inquiry on your credit report after 90 days noone really cares. Citibank doesn't care if you had an inquiry 6 months ago but they do care if it was 30 days ago. Think about it--If you apply for credit your application will expire after a certain period and creditors know this. Unless you have an excessive amount of inquiry's banks don't care after 90 days.

The other thing is the fact that a BK is on your record for 10 years. There may be a few companies that won't extend you credit for the next 7 to ten years but after 3 to 4 years noone will care as long as your credit is reestablished. My Credit Union will give me credit after 3 years, most banks want 3 to 4 years but after that period the only thing you can't do is declare BK again until 7? years have passed.

BK was one of the best decisions I have made in my life and I truly had a new start. I wish everyone good luck in their financial lives and live within your means and you will be happy.

Logan
June of 2007 I was 140K in debt.
Today I am debt free with money in the bank

[StartingOver08]

Congratulations on your true fresh start Logan! I especially like your signature - it says it all!

Good luck in your new state, new move, new home and new life! Sounds like you got it together and have recovered very nicely.

[Flamingo]

The other thing is the fact that a BK is on your record for 10 years. There may be a few companies that won't extend you credit for the next 7 to ten years but after 3 to 4 years noone will care as long as your credit is reestablished. My Credit Union will give me credit after 3 years, most banks want 3 to 4 years but after that period the only thing you can't do is declare BK again until 7? years have passed.

Sounds like you have taken the steps to get firmly reestablished and congrats to you!

A BK can haunt you at any time during the time it is on your credit reports. A BK is a BK and while some companies get more lenient as the years go by, there are some that blacklist anyone who has included them in their filing and that would include any department stores or other stores associated with that institution. I previously posted on here an example of how a BK can hurt you several years after discharge; we filed in 4/02 and had a card survive the filing that was used now and then for purchase and paid off immediately at various times through the years. In the fall of 2008, I went to use it and it was closed out; the reason - BK on my credit reports. Our Chapter 13 is now off our reports (4/09) and it is just like nothing happened except we carry with us to this day all lessons learned and budget like mad. We are prepared in case a job loss occurs and if it does, we would not have to file as with what occurred with us initially.

Once that BK is on your reports, and until it is removed 7 to 10 years later, no blanket statement in the world will prevent it from jumping up and biting you when you least expect it. Just be prepared...