Re: Bankruptcy FAQs
05-02-2010 10:27 AM
Thanks beamMEup. Lots of good information. It seems unfair that if the bankruptcy did not go through the credit bureaus can still report it for 10 years. That's a common response. Don't take it personally. It's that mathematically, those who have filed (whether they are dismissed or discharged) are more likely to have a major delinquency in the future. That's just what FICO does - it's a mathematical algorithm. We are not our FICO scores We kind of have to separate ourselves and look at it rationally rather than personally. I have a BK reporting, as well, so I know how it feels. Something about seeing it in print and associated with your name can shake anyone up. Don't let it. Just take it as something you need to be aware of, and know that the more information you have, the better you can manage your FICO score and how that BK reporting impacts you.
I do not have any Visa, MC, Amex etc. Only 2 store cards and 2 gas company cards. Should I try for a major cc?
FICO likes you to have a bank/national credit card company account. It can be a cc, a heloc, or ploc. It's FICO Reason Code #3. When we app'd for a refi, our loan officer checked to be sure we had a bank/nccc for its FICO score advantage. When I opened my first bank card, I saw a 20 point increase, when DH opened his, he saw a 29 point increase. It was, however, also our first current cc reporting, so your mileage will vary.
I currently have scores in the 700's, mid is 729. As MVV says, “One thing I will ask is where did you get those scores? No one has been able to pull their own Experian FICO score since last February. Creditors can pull Experian and also there is a CU in Pennsylvania that supplies that information to it's members only. You can only buy true FICO scores at a few places. One place is here at myfico. I suggest you do an internet search for "myfico discount codes" to save a little money. You can also purchase your Equifax score at www.equifax.com and your Transunion score at www.transunioncs.com.” The biggest problem with other scores (FAKO scores) is they do not correlate with and are not predictive of FICO scores."
I want to look into refinancing my house to lower my interest rate and get out of an ARM. I've been in this for 3 years and am now past the penalty phase. We did our refi five months after CH 13 BK discharge. We also got out of an ARM, and went traditional. Our BK was really not an issue, even that early on.
I also have a child in college and will need to co-sign on loans. We tried CITI and they turned us down. That's why this whole thing started trying to get my report cleaned up. With the decline in housing prices my LTV is not too good so I won't be able to take on more debt to cover the tuition.
Check out the thread on Education Loans. All of our children have graduated or are currently attending college. We have been very happy to help them in myriad ways, but we have not co-signed for their education loans. They have all done wonderfully. Everyone's situation is different, but if you read and post your education loan concerns there, you will receive excellent feedback.
Any suggestions would be appreciated. I hope that helps! Best wishes.