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Anyone live without credit after BK.

Anyone live without credit after BK.

I'm currenlty going the chap 7 right I have my 341 meeting on december 17th.

 

A lot of things led to my bk but the biggest part was myself..just overspending. In todays world I've been wondeirng how hard it would be to live without credit...no debt will be nice but keeping it that way is the challenge.

Message 1 of 9
8 REPLIES 8
ezdriver
Senior Contributor

Re: Anyone live without credit after BK.

Except for a home mortgage, one can certainly live on cash for as long as they wish. I did it for four years and loved it.

 

Even if one has credit cards, those should beused to simplybe used to pass through your normal expenses with the objective being to build a strong credit profile. I never charge anything to my credit cards that won't be paid off when the statement arrives. That is akin to living on cash.

Message 2 of 9

Re: Anyone live without credit after BK.

My goal would be to live without cash until I decide to get a mortgage. but then again I prolly won't get a mortgage till my mid 30's which I would hope to pay for half a house by then (I'm 26) if not all of it.

 

I plan on getting 1 credit card only after this is over and that's for travle. A lot of hotels and condos won't take debit cards to reserve rooms.

Message 3 of 9

Re: Anyone live without credit after BK.

I'm excited and hurt at the same time about my bankruptcy.

 

I'll feel better after december 17th. I'm working on my budget now as wee speak. I've never made a budget before..kinda sad lol.

 

My overall goal is to have at LEAST minumum 10,000 saved up in 1 year.

Message 4 of 9
whipster
Frequent Contributor

Re: Anyone live without credit after BK.

Remember this is a business decision for your future well-being. Million do this every year, good luck in your new debt-free life Smiley Happy

Message 5 of 9

Re: Anyone live without credit after BK.

It's funny to mention it as a buisness decisions. But that's exactly what it is.

 

My debt has caused me to miss many chances in the past few year.

 

It has actually cost me two jobs that I could have taken with very good well founded companys that have been in buisness for over 100 years! One of them even ment I would get to move back to my home town of Panama City, FL

 

But..because I would have had to taken a pay cut for a short time I had to pass on them because of my bills. Even thoughts of joining the military had to be put off.

 

My main goal is to stay out of DEBT as long as possible...in fact the next time I go in debt will be on a house.

 

 

The world is my oyster.

Message 6 of 9
sonic4321
Contributor

Re: Anyone live without credit after BK.

Congrats on your discharge!  I was 20 years old when I went Chap7 BK.  I'm approaching year 7 soon. 

 

To answer your question, I was able to live without credit more or less for about four straight years.  Using cash/debit to cover everything.  I'll admit, it wasn't ideal because I ran into some of the following issues:

 

  • Rental applications were difficult; had to provide additional security deposit to incentive landlords to approve my application
  • Getting utilities and services was difficult (gas, electricity, cable TV, etc); all of these required additional deposits 
  • Financing a car was easy and it really came down to my income; I didn't do this until four years after my discharge

At the end of the day, my overall feeling is that credit is absolutely necessary and it would be wisest to start rebuilding as soon as you can.  But it should definitely be possible to live without credit - just not as ideal. 

CURRENT (11/28/2014 myFico): EQ 690, TU 679, EX 683
10/01/2014: EQ 626, TU 657, EX 638

Chap7 BK in 12/2008 · Goal: 700s
Message 7 of 9
Dinosaur
Moderator Emeritus

Re: Anyone live without credit after BK.


@Imperfection2021 wrote:

I'm currenlty going the chap 7 right I have my 341 meeting on december 17th.

 

A lot of things led to my bk but the biggest part was myself..just overspending. In todays world I've been wondeirng how hard it would be to live without credit...no debt will be nice but keeping it that way is the challenge.


Somewhere in your life travels you will need credit be it for a rental, utility bills, cell phones etc so it would be in your better interest to have a little credit. Purpose to build a credit profile that is available should you decide to purchase a vehicle, house or whatever. It is about a credit record in the three bureaus. Absolutley 100% sure you will need a credit profile during your life. Yes, I too went down the BK7 route and it took me thirteen years to get decent credit back (not everyone takes this long - lost a business and it was a large BK). Started to rebuild with a Cap1 with a $200 Cl, Orchard Bank and HSBC with secured cards from Wells Fargo and BoA. In the long haul it has been useful even to get auto insurance all but seven state allow the insurance companies to pull your credit which will be used to set your rates. Personally I object to my credit being used to set auto rates but that is a whole 'nother discussion. Good luck on your BK!

Message 8 of 9
AvengersAssemble
Valued Member

Re: Anyone live without credit after BK.

Living without credit is not that bad. I've been doing that ever since I maxed my credit cards 12 months ago. That said, once I get my discharge, I do plan on getting credit cards again. However, we will be behaving as if we were paying cash. In other words, no buying things unless we have the money. We may still buy it using the credit card (just to build the credit score in preparation for buying a house), but we will pay it off in full every month). 

Ch. 7 discharge: January 2015
Pre-filing score: 575
Post-discharge score: March 2015 = 640; April 2015 = 667; May 2015 = 672

Credit One $600 limit; Capital One $3000 limit.
Message 9 of 9
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