Am I foolish by taking a break after 7 and not getting to work reestablishing?

[CrowValleyDpIA]

Greetings

I am sure if I dug through various sites, or even old threads I could figure my question out. Why is it so important to reestablish credit post bk? After filing I have been using checks and only spending what I have. Am I making a mistake by not trying to reestablish some lines. The Chapter seven, was a long process for me and I have learned to use moderation on spending. I was going to address restablishing credit a year after completing my bk 6/06. Is that okay or am I missing something by not getting to work on this new task and taking a hiatus from the process of bk?

Charlie

[Bobby'sGirl]

Wondering that myself...

I won't be finished until after the year is over, but find the idea of going head to head with credit bureaus a bit overwhelming after wading through the BK stuff...

I have noticed the filers most concerned with clearing up credit are looking to need new/used cars, or get into a home in a year or so after BK, and they probably don't have the luxury of letting things slide and sort themselves out. An emergency cc or two for family needs may play a part as well. They feel the need to push and pull their scores into a target zone to get themselves reestablished.

Heading into the archives will give you an overview of what different situations are out there for the board's filers.

[pink_amulet]

There is nothing wrong with you wanting to live using checks and following a good budget!! ....For some that is the ONLY way they should live... those who can't handle the responsibility of credit cards.

However there is also NOTHING wrong with getting a cc to start building your credit again with. Start small....you don't need a cc with a huge limit. Depending on your future and what your goals are you may want to start now. It's not a hassle, or work, just apply and once you get it, lightly use it and pay it off. That's what hubby and I do, when we go out to dinner one time each month we charge it, then a few weeks later we pay it off. We time it so it will show up on a statement, yet the following week it is paid off, so it shows reportable usage.

We are still renting, so for us, it is VERY important to start rebuilding our credit and boosting our scores ASAP. We want a house. Now if I wasn't so worried about it, I'd hold off. It also will help if you want a new/newer car, they higher your score the lower the interest.

It's all a matter of choice. good luck to you and in your endeavors!

[SinkingFast]

We're prolly gonna get to work on improving right away because we are in a precarious spot with vehicles. We have 3 old beaters. I call 'em County Cars 'cause you wouldn't wanna go beyond the county line in any one of them.

Our newest one is 8 years old. All of them have 150K+ miles. They seem to be holding together for now, but, we wanna be prepared just in case we really, really need to do something.

[CindyLou]

Time is money....especially with interest rates on future purchases. I wouldn't wait. Start preparing for your financial future. The better your credit; the better your financial future. You will eventually need to make a purchase on credit; car, house, or emergency....and improving credit is a very very LENGTHY process. Don't wait until you need good credit. Start working on it now. Good luck.

[highNdry]

Fixing your credit and getting youself ready doesn't mean you have to get credit. In other words, you should get your report as clean as possible and get some secured card to get your scores high, so that when you need or ready for credit you don't have to pay too much.

Example, is it worth getting your health checked up even though you don't have any problem. Well, if you catch anything from diagnosis now you don't have to suffer or pay much later.

The credit score just doesn't go up because it is 1 or 2 or 3 year from BK, your score goes up from having credit and using it properly.

[FilingOnMyOwn]

You don't have to start rebuilding, but its pretty important to at least get a start on it. Your credit score will impact everything from what your insurance rates are to whether you'll have to put down deposits on new utilities. At the bare minimum, you need to go through all 3 of your credit reports and correct all errors. Then, I would recommend having at least one tradeline of credit on your reports. Whether it be your car payment, overdraft protection on your checking account, or just one new credit card if you don't have anything else reporting.

[CrowValleyDpIA]

Thanks for all the responses

I think I have gained insight from every post that people put up. I have commited to sticking my head in the sand till the weekend after Labor day. Than I will probably take the advice from several people. I will start by ordering reports and correcting any errors if present. I really was hoping someone would embrace my lazy strategy. But like I gathered from several of you, it takes a while to start the process and impacts lots of things like insurance rates. I guess I just felt fatigued, but will start slowly chipping away at the task even though I don't have any big purchases planned. I will probably get a credit card like someone suggested. But, doesn't my house that I reaffirmed on, count on my CR? Or does the bank not report anymore this info cause I filed? Thanks to all for the support. Nice to come her and ask.

Charlie

[SinkingFast]

I completely understand the fatigue. Nothing about this is easy. Every day presents a new mountain to climb.

Take you're own time. Set a goal to order Credit Reports one week. Take some time to review them. Set the next goal to address inaccuracies you find.

So what if it takes you 2 months to do what someone else might do in 2 weeks??!!

This isn't a race. You got thru the important work. The BK. Now it's like the South after the Civil War. You're in the Reclamation Period. It takes a while to rebuild. Don't push yourself. You have to recover emotionally from the loss you've just been thru. Take your time and do it at your own pace.

[CindyLou]

but...it is addictive, so I give you a month and you'll be on here with us every day.... .take it easy and good luck

[Hot-Tod-E]

Personally I don't think it's a mistake.

What's the hurry to get credit again? Take a break and when you're ready, you'll know it and you will have the strength to do it.

In the meantime, save save save! Then you won't need a credit card for emergencies!

Just my .02 cents!

[JeepMom]

I didn't care to throw my money away monthly to rent. I wanted to own a home again and now I do. It only took 8 months of hard work.

[FilingOnMyOwn]

Why would you want your auto insurance premium to be double just because you have a bad credit score? Thats why you repair, and rebuild with at least one account.

[anonymuse]

Re-establishing credit can be put off for awhile--you deserve a break and you're the only one who knows where your future is in regards to needing a major purchase, like a car. Since you're after a Ch 7, you don't have much disposable income anyway.

One priority now would be to clean up your credit reports (but don't feel like you have to do everything now at once!) Take your time, you probably feel like your whole life has centered around finances and your bankruptcy so don't feel bad about taking a well-deserved hiatus.

[BassBoy]

Well said Anon. That's exactely what I've been doing. I have a car loan now and that's all I'm focusing on right now......making the payments. As for CC's, that's partially what got me in trouble, so I don't ever want to have one again. Well, maybe someday, but not anytime soon.

Good discussion folks!