Post 13 life...

[Anonymous]

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.

[gdale6]

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.

[Jnbmom]

Legit questions are appreciated.

[Anonymous]

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.

[luxeprw9]

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@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.

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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!

[dynamicvb]

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.

[WD2005]

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. 

[tooleman694]

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.

[Anonymous]

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.

[WD2005]

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!