There is a Silver Lining!

[Frshstart09]

I just wanted to post a little "hope" and encouragement thread for those going through this stressful time.

A little background:
I filed and surrendered (was already foreclosing) my home.
I decided not to sign the reaffirmation on the Harley and New Dodge Charger
After my 341 and before discharge, I financed a used 07 Mustang (to rebuild credit) and bought an auction car with Cash.

I recently discharged on 8/12...and on 8/14 my credit score jumped to 741 from 525! I refuse to get anymore credit cards, but it's reassuring to know that if I should want to buy a house in the future, that I'm on the way to making that possible.

I had tried for so long to juggle my finances and was so depressed that I had to consider bankruptcy. However, it has taught me invaluable budgeting and how to live within my means. I realized that I truly didn't need a lot of what I was struggling and stressing to keep. Hang in there everyone, this is an uncomfortable time, but you will be better off when it's done. Good luck!

[music12]

wow, that's quite a credit score. when was it 525? right after you filed or before?

[Frshstart09]

That was after I'd filed....:o)

[music12]

what about before??

[justplaintired]

That's amazing, this happened because you financed a car? Is that the score on all credit reporting agencies? Amazing.

[IBroke]

That's amazing, this happened because you financed a car? Is that the score on all credit reporting agencies? Amazing.

I assume the score might even be higher without the new car - although it will help in the long run..

Truely amazing. It's another example that many people have a wrong idea of BK. As soon as they get a discharge, they don't look at their credit any more. While there is nothing wrong in paying cash from that day on, it certainly doesn't hurt to get the errors off your report and establish new credit with secured loans/CCs.

[Frshstart09]

Thanks everyone! To answer an earlier question, my score had dropped to the low 600s before I filed. I was behind on my house about 7 months...and 2 months behind on CCs before I filed. I had stayed current with auto payments up until I filed. I don't know if that is what ultimately helped me secure financing after the 341.

I broke...you are probably right, however the only reason I financed anything was to build credit history for another home purchase in 5 years or so :o)

Bankruptcy can be a saving grace.....

[Frshstart09]

Oh, 2 of the 3 agencies show a score in the 700s...

[IBroke]

I broke...you are probably right, however the only reason I financed anything was to build credit history for another home purchase in 5 years or so :o)
.....

A very smart decision - just as staying current on your car-loan prior to filing which helps your Auto-FiCO.

Now you have an installment-loan building credit for you. You might want to add a secured credit-card so that you can take full advantage of that as well (to get the highest score, you will probably need a revolving account). I assume your previous card-issuers are going to close your accounts - even in case you didn't include them in your BK.

I didn't went the BK-way due to a lack of income. I decided to sit it out. I'm also rebuilding credit. 2 months ago, I went to a local credit-union and obtained a secured loan. A year ago, I got myself a secured CC and I managed to keep one CC alive during my financial difficulties. I never missed a payment on this little Plains Visa account since it was opened almost 7 years ago and I think it will help me in the long run.

Although my credit-report looks like Berlin after WWII, I received a notification today that my Fico with Equifax went up 7 points to 543 ALTHOUGH one account reported a balance-INCREASE. So time will heal the wounds here.

[mom2three09]

Wow, amazing

Are those actual true FICO scores? Or did you get them from someplace else?

I thought it would take years of rebuilding before we would see credit scores in the 700's after BK We financed a 2006 right before filing but only because dh knows a guy who runs a used car lot so he was able to help us out. Unfortunatly he doesn't report to the credit bureau's Stinks that our on time payments won't even be reported... which is exactly why we don't plan to sign the reafirmation agreement on it

We don't want anymore CC's, but yet we know we need to rebuild our credit so we can eventually sell our home & buy another one. It's really a catch 22

[IBroke]

We don't want anymore CC's, but yet we know we need to rebuild our credit so we can eventually sell our home & buy another one. It's really a catch 22

My secured CC has a $300 limit and even when maxed out, just a minimum monthly payment of $20. Especially after the discharge, obtaining such a card can be priceless. 30% of your score is determined by your debt to available credit ratio. Without any CC, you simply don't have such a value so it's impossible to get a good score.

I don't even consider this card of mine a CC. I simply put money on it once a month and pay a bill I would have to pay anyway.