Credit: Yea or Nay?

[Tobin S.]

I went through a bankruptcy last year. It was just resolved about a month ago. The trustee decided I was too rich and laid claim to $1600 of the $1900 I had in my bank account at the time. I had to pay that off plus interest and taxes. They didn't take it on the spot. I ended up giving them something like $2000 in the end. It was just merciless. Hit a guy who basically doesn't have anything with more debt before you let him off the hook.

I still have a little deal with the condo I used to own. Due to new bankruptcy laws, I have to pay the association fees on the condo until the bank takes possession. It's been seven months since the property went back to them in the bankruptcy, but they are just now getting around to foreclosing on it. That means I've been paying $214 a month on the place for all that time. If I don't, I will probably get sued by the association. Bastards.

So we basically don't do anything on credit right now. The only loans that we have are our mortgage and school loans. The school loans are not discharged in bankruptcy and the house is in my wife's name- she did not file.

I just checked my credit score. It is 667. People will still sell me cars and I can still get credit cards. My credit wasn't bad before I filed for bankruptcy. I never missed a payment on anything. However, after the bankruptcy I told myself that I would never do anything on credit again. I've stuck to that, too.

6 votes, 0 passes | Time left: Unlimited
	Yes: Give me slack or give me death
	0 (0%)
	Yes: With reservations (please elaborate)
	0 (0%)
	No: Unless it is desperately needed
	4 (67%)
	No: Fuck them bloodsuckers
	2 (33%)
	Other (please elaborate)
	0 (0%)
	0 DU members did not wish to select any of the options provided.
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[elleng]

1. You've been through a lot, Tobin.

Bastards indeed.

I've been stuck (probably; haven't checked it) with bad credit rating since my husband and I split; he did some bad crap to me, re ur house. Fortunately I have a decent pension, + SocSec, and add on (don't wanna sound 'mean,' but it's true,) he died so I have survivor pension and soc sec benefits (+ access to his fed govt employees health plan.) Haven't wanted or had CREDIT since we split, ONLY debit. (HOPE my 24 year old TOYO wagon, from Dad, never expires. DO have investments.)

Best to you figuring it out.

[Tobin S.]

3. Thanks, Ellen.

If you want to see want you credit score is, just out of curiosity, you can check it for free at creditkarma.com without it affecting your credit. You'll just have to endure a few ads from the bloodsuckers.

[elleng]

5. Thanks, but I have no interest in seeing it;

no benefit, imo. Don't want 'credit,' and don't want to see any 'bad' news, would just renew my anger against husband. I prefer 'ignorance!'

[pinboy3niner]

7. That sucks

I have a bunch of credit cards, and the couple I use I pay in full every month. I have a top credit rating, which I value because I have access to thousands of dollars in the event a relative, friend or I have an emergency.

But when I buy my next new car, I'll pay cash. Something I'll be able to do because of my frugality.

[elleng]

8. It does kind of suck, pinboy, but

I HATE to pay bills, and as I have a decent, moderate investment account, I expect to cover emergencies with it (and any 'new' car I might need.)

[Chan790]

2. No. I'm slowly working to eliminate all my debt...

and cancelling cards and lines-of-credit as soon as they reach $0.

No more credit...never.

[Tobin S.]

4. I hear you.

Getting into debt is a hard hole to climb out of, and creditors count on that. They'll keep you there for as long as you'll let them. Our bankruptcy laws aren't perfect, but I'm glad we have what we have at least.

[flamin lib]

6. Ah, Tobin, life gets better after BR even if it is difficult at first.

I did BR on the 11th hour of the last day before the law changed. The new rules really suck for you but you've completed the process and believe it or not the HOA dues can work in your favor. The are reported to the credit agencies and if you don't miss one it counts as 'paid as agreed'. Your score of 667 is pretty good this close in and it won't take much to boost it.

I know it's hard to wrap your mind around right now but you really do need credit cards. Using them boosts your 'paid as agreed' score. I operate my house hold budget on a CC. Pay it in full before the due date and pay no interest. Then I apply any 'points' to the balance so I reduce the balance. Feels good to use their own incentives against them and unlike cash, check or debit card you can protest a charge if need be.

Do that for a year and your score will get to 750. The key is to keep the outgo equal to the income. Think of it as credit same as cash.

[mnhtnbb]

9. We pay off our credit cards every month

which means we don't charge something if there isn't money to cover it.

When you're younger, you need to have a good credit score IF you want to buy a house or your car
dies and you need a new car.

Just using a credit card for gas purchases will build up your credit score. Don't use it for anything else
and pay it off every month.

My oldest son qualified for a mortgage--based on no other credit history than that--when he was in his
early 20's.

[noamnety]

10. I didn't vote in your poll

because I don't know the history of your bankruptcy. I don't know to what extent it was the result of decisions you've made (bad investments, living beyond your means, pricey day to day habits like eating out), or things that were out of your control (medical crisis, for example).

If it was stuff that was out of your control, I don't think having a credit card again is a bad thing. But if you know in your heart you didn't need to get as far into debt as you were, then I would stay away from it and avoid the temptation.

I use a credit card for almost all my purchases - but I know I can pay it off each month in full so I'm not accruing interest. And I make sure I have the money to cover it when I charge it - not counting on that next paycheck to cover the bill.

I know if I'd had a medical emergency back when I couldn't afford insurance my situation would be way different; there are absolutely some bad things in life I avoided through luck; I recognize that. Just saying that if the debt was from your own choices I would try living a while without having credit until your habits are firmly changed if that's what you need to do.

[Tobin S.]

11. I left options there that fit your reply. Go ahead and vote.

Here's what led to my bankruptcy.

I was living well within my means. Then I met my wife and fell in love with her. I soon found out that she had made a lot of bad decisions with money. Being an old fashioned guy, I tried to be chivalrous and bail her out by absorbing a lot of her debt while taking care of my own obligations. Long story short, that didn't work and I took the fall for both of us.

If you are wondering...it has been worth it. I've been married for nearly five years now and I am happy that I have those experiences with my wife. I'm old school. People are worth more than money to me and I'll gladly spend whatever it takes to save a life. Love is priceless.

[noamnety]

12. Fair enough.

I vote for only in a crisis then, like you can't get emergency care or a roof over your head unless you do it on credit.

My logic is that you probably could have been both madly in love with each other without you picking up her debt, and hopefully you would have still ended in the same awesome place with each other.

I might be being an idealistic idiot with that statement.

But anyway, yeah, if she's the one that's bad with credit, and you are simply bad for being a sucker for bailing her out I would still avoid it if you possibly can. And congrats on finding an awesome life partner, I agree that that's the most important. A close second though might be managing funds and assets so you can both retire early and spend even more quality time together. It's not the money; it's that money & frugality buy freedom and time.

[IrishEyes]

13. I voted for credit with reservations.

I have a great credit score. Two of my credit card companies give me my credit score every month. I have a lot of debt from medical bills and when I lost my job which I am paying off a little each month. My job doesn't pay very much so I can't pay a lot each month. I have only used my credit card a few times in the last couple of years and only for emergencies. I really was glad to have my credit card when I needed it.

[TexasBushwhacker]

14. I agree. Get a card or two with low limits

And pay them off monthly if you can. Try not to let the balance get over 29% of your credit available.