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Life after Bankruptcy


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  • 2 weeks later...

FICO made little difference during the first 2 years after my BK7. They saw the public records and I paid for it in interest with every bit of credit I obtained.

Despite having good employment I still got whacked with 18% on my first used car note after BK. Paying on that, never being late, allowed me to refi the car at a lower rate of 10% 9 months later. Credit cards remained high-interest even 3 years after the BK7. I only started getting good credit card rates (7-12%) after my 5th year off the BK; prior to that they were in the 20-25% range.

It is now 7 years after the BK7 and I finally started getting FICo scores in the high 600s with cards and loans being in the "prime rates."

Now my case may be a-typical because I had a former employer leave me holding their AMEX account when they themselves went BK and that hurt my scores since it happened after my own BK7. ID theft is a bitch (employer used my SSN on their business AMEX without my permission).

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While credit is a good thing, i myself have really learned the lesson of pay later, I have used a debit card for the last 2 years, no cc at all,if you dont have the cash, you dont need it that bad...manage your money and you will do ok.

Dont know if this is true or not, maybe scores would be better if you try and obtain credit a good while after BK..seems to me that they watch for those going back into the credit game after bk and whack em..i wonder if post BK 2 years or so would be a better time to start in?...Just wondering

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Guest jeeptravel

6 steps:

1) Join a monitoring service of all 3 like www.mycreditkeeper.com and opt out of all offers with the CRA (see credit repair 101 sticky)

2) Send notice to all debtors not reporting the discharge and get all balances to report zero.

3) Check your score/report often, try to dispute baddies periodically.

4) Get a job that pays well enough for you to have your desired lifestyle. Without sufficient income, you have no business getting new credit.

5) Establish new credit: ie; Put 60% cash down on some jewelry for your wife, finance the remaining 40% through their in-house credit (ie; daniels/Kay's/ZALES); Apply a few months after discharge to Household Bank, Target Guest Card, Wait for pre-approved offers in the mail for new credit cards.

6) Visit ths site often


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