Post Chapter 7 Credit

[carlsbadmike]

I received my 1st credit card approval, 6 weeks after my Chapter 7 BK was finalized. It's only for a small amount, but I am happy with it. Now I can start rebuilding my credit. I'm just posting this to give hope to those of you still going through the process of BK. Best wishes to all of you.

[dspii]

Kudos to you....remember the lesson we all learned, cc's CAN be evil, but a necessity in some cases like travel. I too received an unsecured cc just after discharge, I only lightly use it. To my suprise, I actually got approved for a new car loan 8 months after discharge at 3.8%....not bad for post BK.

Life gets better with the fresh start....man did I need it....life became somewhat simpler, my stress level dropped a million points, and its nice to say "I can't afford it", cause the plastic ain't there and really...I can't afford it. My lessons learned stem from the fact of my underemployment, high debt load, terrible economic conditions and the fact that I knew the good times would come to an end...I just did listen to myself.

If you live a fairly stable existence with no immediate (known) life changing event's such as a new job, moving, buying a house or the need for large capital, you'll likely forget about the BK, enjoying your life with the fresh start, long before the credit bureau's remove it in 10 years. Some times people need credit, others live on a cash basis forever.

If you have or foresee life changing events on the horizon, your BK can be a challenge that we can all overcome. Be prepared...write a short and factual bullet list of why you had to file and be sure you put the positive spin on it....sell yourself and the challenges your BK presented and how you overcame them. BK is allowed by our law, but it can and will present a challenge for us at times, be prepared, be honest and most importantly use your fresh start wisely.

[drowning123]

True words, dspii.

[carlsbadmike]

My BK was brought on by my business closing down due to the economy so that's the best spin I can put on that. Following that, I had to take a $100K loss on my house that I sold because I could no longer afford. Following that I lost my car because I could no longer afford it. Following all of that, I went on disability. I've had a lot happen in 1 years time and it's hard to put a positive spin on it at this point in my life. I agree totally on the fact that credit cards can be evil, and were for me prior to filing BK. I won't be getting in too deep with a $300 credit limit and will pay it off every month. I have gotten several letters from local car dealers saying they would make me a loan post bankruptcy which was encouraging even though I don't need a car right now. One day things will settle down and things will be on the positive side again.

[outsidetool]

Yes, there is life after BK. I filed Ch 7 just short of 2 years ago, my wife did not, and she has continued trying to pay off about $10k in cc debt. Her credit score is under 600, mine has rebounded now to mid-600's. I had bought a used car at a high interest rate after my 341, and had surrendered a pricey car. Recently I was able to trade in the high interest oldy on a new, reasonable priced car with a 5.5% rate. I'm thrilled. I did also get a cc from my credit union about 6 months after discharge, low limit. Use it rarely and always pay it off. I've thrown about 20 offers for secured cards in the trash.

[freedomnow7]

dspii, very well put. I am awaiting discharge, and I find myself looking forward to living on a cash basis, and without a car payment. Ever since my 341 meeting ended, things are looking brighter and brighter. Filing Ch. 7 truly does take a load off.

[btbeme]

I know a LOT of people who have no credit score whatsoever - because they pay cash. Getting a large, secured asset with a "poor" credit score might cost you more in interest, but if that difference in interest or terms makes the difference between being able to buy or not, I would second guess myself on whether I could actually afford it anyway.

As it was explained to me, a credit score is actually a debt score. Every single portion of how a credit score is "determined" by the Big Three Bureaus has to do with debt - how much, how long, how well you have paid, etc. If you have no credit score because you have no debt, is that a bad thing?

Food for thought...

I know that the world seems hell-bent on determining your value as a consumer by granting you a credit score. But that, by no means, determines your net worth. And a positive net worth, especially debt-free, is as good as it gets.