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  • shipo
    replied
    justbroke and sophieanne, I think the three of us are on the same page, credit is not a "scam", it is a "tool".

    Leave a comment:


  • justbroke
    replied
    sophieanne yes, each person has different requirements and those will dictate whether or not credit is a necessary evil. What's good for some may not be a good idea for others.

    The big distinction that I would make is whether someone relies on credit as an income crutch, compared to someone who leverages credit to meet a goal. I would hope that everyone fell into the latter category. Credit dependency is not good for anyone. Leveraging credit, however, can work for people in the right circumstances. Even buying a home "without" credit then makes you still reliant on credit since the new loan will be reported.

    (I think we posted at the same time and my post was generic.)

    Leave a comment:


  • sophieanne
    replied
    justbroke I totally understand the need for credit when you’re running a business - it’s essential. My comment was just that everyone has to make a personal decision that’s best for them - there’s no right or wrong opinion 😊. I speak for myself not on behalf of others.

    Leave a comment:


  • shipo
    commented on 's reply
    Thanks sandlunatic, looks like that makes three of us looking for a new home.

  • sandlunatic
    commented on 's reply
    It’s fun watching everything finally go in the right direction. This dang 2 year wait though for the the drop off is what sucks. The chapter 13 itself wasn’t all that bad, we learned to be cheap and budget real quick and lots of side work for myself. Luckily people need electricians, lol. Best of luck on the road to next March.

  • sandlunatic
    commented on 's reply
    Good to know, I will let that Equifax naturally come off. I, like yourself have a home to purchase and don’t need that drama, lol.

  • justbroke
    replied
    I almost certainly need different types of credit to run my businesses. Everything from SBA loans to even leasing commercial space requires credit. I have business credit revolving, 30-day, 60-day net, 90-day net and charge cards. It makes it easier to purchases goods for the stores and to control how cash is spent. My favorite is the 90-day net I get on purchases made through our major supplier. That allows us to use cash for other things (even though the business has the cash).

    And that's just a business. Now my business is mostly self-sufficient with credit, but lately, since COVID, everyone wants a personal guarantee. Very difficult to do if you don't have any credit lines reporting.

    But that's me. What I need to do personally and in business requires credit. If I had $250,000 in liquid cash, it still wouldn't matter for the business.

    Leave a comment:


  • sophieanne
    replied
    That’s the whole point.,,everyone is entitled to their own opinion. I completed a very expensive chapter 13 in 2016… And in the last year, I refinanced my mortgage to an unbelievably low interest rate that is conventional. My mortgage should be be paid off in less than 5 years because of the super low payment. I’m about to buy a new vehicle with cash and any credit card I owned is now paid off. I don’t ever want to go back to using credit unless it’s a true emergency. I agree that credit can be a tool… But it’s not a tool I want to use ever again. Bankruptcy was a learning tool for me… And I never want to go back.

    Leave a comment:


  • shipo
    replied
    Originally posted by 5yrplan View Post
    Credit and Credit ratings are the biggest marketing scam ever created. You don't need to borrow so you don't need a credit score. Yes you can get a mortgage without a credit rating it's called manual under writing. Anything else you save and pay cash while debt free.
    You are certainly welcome to your opinion, but many of us, myself included, whole heartedly disagree with you; credit is a tool just the same as a drill or saw or wrench, use it wisely and benefit, use it irresponsibly and you can harm yourself and others.

    Leave a comment:


  • 5yrplan
    replied
    Credit and Credit ratings are the biggest marketing scam ever created. You don't need to borrow so you don't need a credit score. Yes you can get a mortgage without a credit rating it's called manual under writing. Anything else you save and pay cash while debt free.

    Leave a comment:


  • justbroke
    replied
    Originally posted by sandlunatic View Post
    Not sure what the heck happened but my Experian went from 674 to 736!! It shows no more public record so I assume the BK fell off, I didn’t dispute with them yet. Just leaves Equifax...I’ll try them in a couple weeks.
    Equifax is touchy on the dispute of bankruptcies. It should automatically fall off about 1 months prior to the 7 year date. I would not dispute with Equifax as there have been horror stories where they just decided to clean the entire report (including "good" closed accounts). When mine came off from a Trans Union dispute, it went up 29 points.

    A 60-point jump is not unheard of. I was just in the low 700s and then I let an account go to 89% and got slammed with a 33-piont drop. I am just about to buy another home and this happens. Well, at least next month that issue should be corrected... we'll see.

    Congratulations on the huge point increase.

    Leave a comment:


  • shipo
    replied
    Originally posted by sandlunatic View Post
    Not sure what the heck happened but my Experian went from 674 to 736!! It shows no more public record so I assume the BK fell off, I didn’t dispute with them yet. Just leaves Equifax...I’ll try them in a couple weeks.
    Wow! You're making me "pine" for March 2022 when my Chapter 13 falls off.

    Leave a comment:


  • sandlunatic
    replied
    Not sure what the heck happened but my Experian went from 674 to 736!! It shows no more public record so I assume the BK fell off, I didn’t dispute with them yet. Just leaves Equifax...I’ll try them in a couple weeks.

    Leave a comment:


  • justbroke
    replied
    Life after bankruptcy does exist. You are at the doorstep of an 800-score 7 years post-discharge in a Chapter 13. Congratulations again on your score.

    Leave a comment:


  • sandlunatic
    commented on 's reply
    I feel your pain on Experian, the other 2 had/have me at 680-695, Experian dropped me from 642 to 626 last month and I don’t know why. They’ve always been 20+ less than the other 2.

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