Anyone Scared

[jb300]

My BK was just discharged earlier this month. I know I should be doing some things to make sure that my credit report is getting correct notations on it. I also feel the need to rebuild some credit somehow but honestly I am scared to do anything yet.

Did anyone else feel like this after their BK? I had such good credit before and it almost makes me sick to think about looking at where my credit score is at now and to have to start over again.

I am scared of making a mistake too. I know that I will pay anything off every month but I am scared to take that first step.

[StartingOver08]

Listen to a little Dave Ramsay...he really emphasizes that you don't need a good credit score to pay CASH!

[willbfree]

The only time I get scared is when I think about ever owning a credit card again. I like paying cash. I like being able to put money into a savings account instead of paying hefty credit card bills every month. I watch that savings cushion grow every month so if I have car trouble or need a new appliance I can pay CASH. I don't need credit anymore. Sure I would like to have a great credit score but my goal is to never need a good credit score again.

One of my long term goals is to pay cash for the next vehicle we purchase in a few years. I would love to be one of those people who just write out a check and drive away. Without being chained to credit card bills and being realistic about new purchases I think it's possible. I don't need very much because the whole bankruptcy process showed me that possessions are "stuff". It's amazing how much "stuff" we had accumulated and if it disappeared tomorrow I would never even notice let alone miss it. I will never be a slave to the credit industry again. My only regret is I didn't have this epiphany twenty years ago.

[Never_Again]

One of the problems that we have as a society is that we have made the FICO score out to be some indicator of financial health. Does anyone want to even consider the fact that the FICO does not include net worth? It does not include normal living expenses? All it is is an indications of how much debt you utilize, and how you pay it.

The OP said that they had good credit, and it makes them sick to think of where it is.

First of all, a FICO score is not an indication of your worth as a person. Yes, I know, some say otherwise, but usually they are the ones trying to sell you something, or trying to sell you a product to monitor that score.

Second, Net worth, and Net income say more about a person's financial strength than FICO. Many on here say that their FICO dropped considerably when they filed, and everyone is scrambling around and trying to bring it up. And we do some stupid things to do that! We accept credit cards with $300 limits, when $200 of that limit is eaten up in fees on the first statement! In my book, that is not the best financial solution.

You know, my FICO actually has gone up considerably after my filing one year ago. I had to check out of curiosity. I have done nothing to try to manipulate it. I have not gotten a credit card, I have not gotten a loan. I have not bought a car. That said, I believe that it was about 480 before, and now I think that it is about 620. The real number, is my net worth. It has gone up by about $150,000!

If you are scared to take that first step, it could be with good reason! You do not have to do it! Why don't you live for a year or two without a credit card, and see how you do? Why not accumulate some cash money, and start an emergency fund?

You do not need to be one of the lemmings running over the FICO score cliff.

[wantout]

One of the problems that we have as a society is that we have made the FICO score out to be some indicator of financial health. Does anyone want to even consider the fact that the FICO does not include net worth? It does not include normal living expenses? All it is is an indications of how much debt you utilize, and how you pay it.

The OP said that they had good credit, and it makes them sick to think of where it is.

First of all, a FICO score is not an indication of your worth as a person. Yes, I know, some say otherwise, but usually they are the ones trying to sell you something, or trying to sell you a product to monitor that score.

Second, Net worth, and Net income say more about a person's financial strength than FICO. Many on here say that their FICO dropped considerably when they filed, and everyone is scrambling around and trying to bring it up. And we do some stupid things to do that! We accept credit cards with $300 limits, when $200 of that limit is eaten up in fees on the first statement! In my book, that is not the best financial solution.

You know, my FICO actually has gone up considerably after my filing one year ago. I had to check out of curiosity. I have done nothing to try to manipulate it. I have not gotten a credit card, I have not gotten a loan. I have not bought a car. That said, I believe that it was about 480 before, and now I think that it is about 620. The real number, is my net worth. It has gone up by about $150,000!

If you are scared to take that first step, it could be with good reason! You do not have to do it! Why don't you live for a year or two without a credit card, and see how you do? Why not accumulate some cash money, and start an emergency fund?

You do not need to be one of the lemmings running over the FICO score cliff.

This....

When this is over for me, I am done, I have sworn to never again hold a CC, never again. My score can drop to 0 for all I care, when I think about how much money I have pissed away on interest and such, I cringe.......

[Never_Again]

This....

When this is over for me, I am done, I have sworn to never again hold a CC, never again. My score can drop to 0 for all I care, when I think about how much money I have pissed away on interest and such, I cringe.......

And how much money has been wasted on buying things that you really didn't need as well! I know!

Good for you! Build your cash reserves and net worth, and not your credit and FICO score.

[$$only4ever]

I, too, will never own another credit card. Just remember the FICO scores were invented by the banking industry. They would love to suck everyone back into "credit card hell". Don't need them, don't want them. I have not used a credit card in almost 5 years and I love paying cash for everything.

[lookingforward]

It's been a year since we've used a cc. I've found that I look at spending money in a completely different way. When I have to pull out the cash, I think twice about buying something. When I was using cc, I bought whatever caught my eye, whatever the kids wanted, just whatever. It is a whole new way of life for us. I agree to the poster above, you don't need "stuff". What do I have to show for all the cc debt? Not much. Not really anything. I will NEVER do it again.

[mike258]

It's been a year since we've used a cc. I've found that I look at spending money in a completely different way. When I have to pull out the cash, I think twice about buying something. When I was using cc, I bought whatever caught my eye, whatever the kids wanted, just whatever. It is a whole new way of life for us. I agree to the poster above, you don't need "stuff". What do I have to show for all the cc debt? Not much. Not really anything. I will NEVER do it again.

I was the same way. I would buy anything without even thinking about it. Now I get pissed off when I have to spend $2.99 on a box of cereal.

[jb300]

Good points everyone, thanks!

[ska]

I was the same way. I would buy anything without even thinking about it. Now I get pissed off when I have to spend $2.99 on a box of cereal.

LOL Ditto! I am so stingy with money now. October will be one year since I have used a credit card. It has been a hard adjustment; changing my spending habits was very difficult, but I am getting better and love to see how long the $5 in my purse will last me.

[brokeasajoke]

I just had my 341 today. I have been looking at some budget tools, inputting what assets I have, what bills I have left, all that stuff...

I realized I may have totally trashed my FICO score, have no credit and no chance or desire of getting any BUT I now, for the first time in my adult life, actually don't owe more than I'm worth. Heck, I'll take that any day over a 730 FICO score.

I may clean up my credit report when this is all over. Mainly just to make sure everything is discharged properly. I really don't foresee a need for credit. We've been credit card free for about a year now. We've not paid on them since May. My pay has been cut 25% this year. I'm more healthy financially coming out of all this than ever.

I think for me and more importantly my wife & kids, that's the best outcome I could have wished for.