No-Debt Bankruptcy???

Anonymous · ‎09-12-2016

To make the long story short, all my credit cards went into default in 2010. In JUne of this year they all went Out of Statute for suit. By May 2017 they will all fall off my credit report. The problem is nothing (and I mean NOTHING) is working at building my score back up.

I was told that as the debt age, the scores will recover - it's the first two years that count the most. The debts are now over 6 years old and my score still hovers in the 620-625 range.

I was told to pay off the remaining debt to look more able to repay. I paid off my mortgage and lost 25 +/- points.

I was told to get a secured credit card and use it for a small purchase. I got a secured card witha $250 line and bought a tank of gas. I lost 2 points on the inquiry and another 2 when the TL was reported ( paid the bill before I even GOT the bill).

I see on these boards (and others) that people who file a Bankruptcy get all sorts of credit immediately and see relatively quick bounces back from the credit score abyss.

Since I don't can't be sued on all the out of statute debts, can I simply file a no-debt bankruptcy and do that? At 625 I really don't have much further down to go.

Anonymous · ‎09-12-2016

Your issue is you don't have enough credit reporting. You need to open 2 more cards, and one small installment loan. The loan may need to be a secured type from a CU, and possibly the cards as well. Without utilizing credit there is nothing to score you on.

Anonymous · ‎09-12-2016

And be certain to let a card report a balance, preferably under 10% of your limit. After that you just need some credit aging.

Anonymous · ‎09-12-2016

2kids2cats is spot on. Two more revolving accounts (secured or unsecured) and an installment loan are whats needed. The advice to pay off the mortgage "for scoring pusposes" was simply bad advice.

You simply need to add a couple of accounts and let everything age. Damaged "thin files" such as yours are sometime slow to grow. But if you get those accounts established you see your scores jump way up once the derogs all drop.

Anonymous · ‎09-12-2016

@Anonymous wrote:
2kids2cats is spot on. Two more revolving accounts (secured or unsecured) and an installment loan are whats needed. The advice to pay off the mortgage "for scoring pusposes" was simply bad advice.

You simply need to add a couple of accounts and let everything age. Damaged "thin files" such as yours are sometime slow to grow. But if you get those accounts established you see your scores jump way up once the derogs all drop.

Another issue that may be hindering you is if one or more of those old CC accounts are showing unpaid balances, they may be hurting your UTI. But as they drop off that will be corrected.