I used to think that living with cash meant I'd have perfect credit. I didn't owe anyone anything, so I must be an ideal borrower. That may be true, but the formula used to calculate your credit score doesn't agree. To have a good credit score, you have to use credit.
That doesn't mean you need to charge up shiny new credit cards and carry a balance, however. Some people fear credit cards, and rightly so in my opinion. My abuse of them is what lead to my BK. It's up to you if you want to get work on your credit, but getting credit cards is opening Pandora's box for many.
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I am traveling the road a few months behind you, but I have read a lot about rebuilding credit. Your score will increase over time, but there is a limit to how high it will go if you do not use credit. To have a high credit score, you must show that you can use credit responsibly. For more on rebuilding credit, go to our rebuidling credit subforum.Leave a comment:
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Life without credit
I'm down to 1 payment left after being in a 5 yr -100% plan. While its been painful, it will be so nice to be done..
I've lived the last 5 years without any credit, and honestly I like it.. I recently purchased a 2011 GMC Duramax diesel truck and paid cash (after working my bum off with lots of overtime). It felt rewarding to pay cash and know I don't owe anybody.
If I don't obtain anymore credit once I recieve my discharge, will my credit score get worse or better? I kept my home during the bankruptcy, but did a modification. For some reason now, Bank of America no longer reports my home to the credit bureas. So essentially, there will be no activity on my credit reports.
Just wanted to get advice from those who have traveled down this road.
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