topic Re: Post 13 life... in Bankruptcy

Post 13 life...

Anonymous — Tue, 31 Jul 2018 00:05:09 GMT

So I’m just totally curious here. I completed a chapter 13 a few months ago and since then I’ve went out of my way to actually lower my credit score. My goal is to achieve a zero credit score although I’m not sure I can accomplish that. Has anyone here actually went that direction? It may sound crazy but credit is what got me to that point so why would I want to do that again? Legit replies are appreciated.

Re: Post 13 life...

gdale6 — Tue, 31 Jul 2018 02:38:06 GMT

There is no such thing as a zero credit score unless you report is totally blank with nothing on it as one needs an OC account for 6 months before a Fico score can be generated. Bottom end of a normal Fico score is 350 some models go down to 250.

Re: Post 13 life...

Jnbmom — Tue, 31 Jul 2018 02:40:53 GMT

Legit questions are appreciated.

Re: Post 13 life...

Anonymous — Tue, 31 Jul 2018 12:35:56 GMT

And that was a legit question. I’ve gotten some really good information on this forum in the past and it’s great to read success stories of people accomplishing their goal of improving their scores, etc. I simply wondered if anyone ever purposely went the opposite direction.

Re: Post 13 life...

luxeprw9 — Tue, 31 Jul 2018 16:17:42 GMT

@Anonymous wrote:
So I’m just totally curious here. I completed a chapter 13 a few months ago and since then I’ve went out of my way to actually lower my credit score. My goal is to achieve a zero credit score although I’m not sure I can accomplish that. Has anyone here actually went that direction? It may sound crazy but credit is what got me to that point so why would I want to do that again? Legit replies are appreciated.

I completed my CH13 BK in 2016 and it has just dropped off all my reports. While I understand what you are saying, "credit" should not be blamed for our financial mistakes. In my opinion, credit is neutral - it's what we do with credit that can either help us or hurt us. Instead of shunning credit altogether, maybe learn more about the proper way to use it. It definitely has it's benefits and anyone, if diligent, can use it responsibly.

Also, keep in mind - credit scores are used by more than just banks or credit card companies. Insurance carriers, landlords and some employers use your profile to make assumptions/determinations.

Just something to think about......

Congrats on completing your CH13 and I hope the best for you going forward!

Re: Post 13 life...

dynamicvb — Tue, 31 Jul 2018 20:56:42 GMT

I felt the same way during my BK payments. I did not even think of doing any credit for the first year after discharge. Of course, it was not the fact that I could get the credit that caused my issues, it was that I did not have the right mindset. The truth is unless you are just loaded with cash, which I doubt or you would not have filed, then you will need some credit at some point. You will need to buy a car and a decent one costs more than most people can pay for in cash. Or you will get tired of renting and want a house, whatever

I would say keep reading these forums, build up a nest egg, then once you have a decent strategy start building again. but that is just my opinion and I totally respect yours to stop using it at all.

Re: Post 13 life...

WD2005 — Wed, 01 Aug 2018 00:34:20 GMT

Payment #56 is scheduled to pull on Friday from TFS for me. I'm doing everything I can to get my credit moving in the right direction. I wasn't prohibited from obtaining credit in my plan so I started with a Green Dot Secured, then a Credit One, a secured local CU card, a credit builder loan and gardened for almost a year (2 + years for Green Dot).

In May I got an Ollo Platinum card and out of nowhere was prequalified for a Discover It unsecured card.

Lastly I joined NFCU through my sister early last month and got the secured Nrewards card.

All the cards except Discover and NFCU sit in a drawer now with zero balances. I PIF every week as well. Credit is a necessary evil and I've had bad credit for 95% of my adult life. I don't NEED credit cards as I've lived with cash all that time, especially in the first 3 1/2 years of my BK13, but I will use them to my advantage. I want a car and house next year. Gotta play the credit game in order to get approved and get a good rate. I'm glad I found this site.

Re: Post 13 life...

tooleman694 — Wed, 01 Aug 2018 02:33:39 GMT

Lots of people live without credit scores, just make sure you don't need an autoloan, mortgage and other types of credit. Just pay with cash.

Re: Post 13 life...

Anonymous — Wed, 01 Aug 2018 12:09:05 GMT

Thanks for the replies. I guess what I’m thinking is that for 5 years I lived without credit and just don’t want to go down that road again. I came out of my Chp 13 much better off than before. I already have a home that was excluded from the 13 so when I made my last 13 payment I only had a mortgage payment and it felt really good. I did have to get a newer vehicle but was fortunate enough to have saved enough to pay for 2/3 of it and finance the balance for 12 months and still keep a cushion of extra money for emergencies. Honestly the 13 turned out to work in my benefit and I paid back 100%. Every one has a different goal but I had just never read about anyone purposely keeping their score down instead of getting it up and thought there might be someone here that had that same way of thinking.

Re: Post 13 life...

WD2005 — Wed, 01 Aug 2018 16:26:44 GMT

My Chapter 13 really has been the best thing I ever did financially. Before I filed I lived paycheck to paycheck despite making $80K-$100K per year. It forced me to really budget and prioritize. For the first time in my adult life, I managed to create a real savings account. I also set up a checking account for fixed bills. Money goes, stuff gets auto-paid. Before my BK13 I would pay bills out of the same account I used for everything. It was chaos. Never again!

Re: Post 13 life...

Anonymous — Wed, 01 Aug 2018 23:24:49 GMT

Dude... I totally understand that! I was the same way. The wife (now ex wife) and I were making $175k/yr and when she let a couple of credit card payments get missed and the fees and interest rate went to outer space I just said screw it and we did a 13. We got on the 100% plan but without accruing interest and fees and after 48 payments I got rid of her. I paid the remaining 12 payments and came out much, much better off.

Re: Post 13 life...

teflon_Cat — Fri, 03 Aug 2018 20:49:14 GMT

You got rid of her? Lol... How much was your loan payment and total payment to the trustee? I am in the process now of filing 13. I am currently 6 months behind home loan, 3 months behind car loan. My lawyer said i need to make 910 days since I got the car to cram it down. Auto loan is 3% and home loan is 3.3% on FHA. I fell behind during divorce, and outrageous child support payment. I am now in a better job so want to save home & car, I can get other cards later down the road. Don't really need anything but those two for now.

Re: Post 13 life...

Anonymous — Sat, 04 Aug 2018 02:43:12 GMT

About $1800 a month for 60 months. We were never behind on the house or cars. The house was excluded but we weren't allowed to exclude the cars. The last year of payments were a bit of a struggle but we worked out a deal in the divorce that I paid them all and she gave up her part of the house so it all worked out.

Re: Post 13 life...

teflon_Cat — Sat, 11 Aug 2018 12:44:42 GMT

Thanks man. I recently got sued by a local cu for a PLOC that I had go bad they got a judgment as well so I def gotta file to protect home, and new job so that I can survive. $1,800 a month is very high, you still had to pay regular home loan, car payments out of the plan right?

Re: Post 13 life...

Anonymous — Thu, 16 Aug 2018 05:30:49 GMT

I still had the regular mortgage payment but no car payments. Mortgage, Chp 13 payment, and utilities. It wasn't too bad for a year.