What has your BK taught you about credit?

[discombob1]

One of HHM's replies started me thinking. I do believe I have learned a lot from my BK, or more precisely from the actions leading up to my BK. However, I started wondering what I learned about credit. I'm curious to hear what others think.

For me, I've learned that credit is over-rated... both for what it can do for me, and how the world views it. Such a high priority is placed on credit by our society and I want no part of it. But even wanting to ignore there I am, diligently working to rebuild it like everyone else. That's the power credit has.

I have learned that saving cash and then buying something I really want is fulfilling. I get great satisfaction from watching my savings account grow... much more satisfaction than buying something new I probably don't need anyway. And finally, I've learned that I don't want to rebuild my credit so I can but things. I want to rebuild it as part of my journey to respect money and use it wisely.

Anyone else want to share your credit lessons?

[IBroke]

If the credit-score would only influence our lives in regard to CREDIT, the discussion would be much simpler. But the score has much more control over us than we want. I totally understand if somebody doesn't want to deal with loans and CCs any more after discharge, but unfortunately, that isn't all.

Jobs are influenced by your credit, insurance is influenced by your credit..heck, even getting a decent cellphone-contract depends on credit. Two years ago, I was denied a simple checking-account based on my credit. I only wanted to set up a secured loan but needed a checking-account with them in order to do so. My Chex-record was clear - but my credit-report wasn't.

So, as you can see, the credit-report and -score go further than our CREDIT...what a shame!

[panda]

My bankruptcy has taught me to deal with things on a cash basis, if I can't afford it I don't need it. Having a $48,000.00 credit limit on a credit card is just stupid, especially for the fools who gave it to me, and for me being stupid enough to spend it all and then some, granted I did have a business that failed, but it was my business, so that is not an excuse to get away without owning up to my responsibilities for some of the decisions I made.

For where I am at in my life I need only two credit cards, the second is only for backup to the first while I may be traveling. I do not need a huge credit line, 1500.00 would be nice for buying tickets and renting a car, but paid off in full when the bill comes due. I can't really get in trouble with that dollar amount, so I don't want any more than what I can handle, as temptation could creep in to spend more.

Bankruptcy has taught me that I will be paying for my "sins" for quite a long while, as noted previously some insurance policies have increased, but so far that has been the only true negative, although I am sure more is to come.

Bankruptcy has truly taught me that I can survive anything, even when living in the pits of the *ell our lives were for many months, we are now free, and it is wonderful.

Bankruptcy taught me that it is not the end of the earth, just another passage in time. And it is ok to want to move on and then do so. Thank goodness we live in a country that does give us the gift of a new start.

[espo1357]

BK really didn't teach me much. I have always been frugal. Not cheap, but frugal. I bought my home at the peak, and that was bad luck, bad timing, but I was making 6 figures when I bought the home, and took a huge paycut and then the real estate market went to shit.

If anything, BK taught me that we do have OPTIONS in life, and it is our responsibility to uncover those options when times get tough.

As Scripture says, "my people perish for lack of knowledge"...

Its the same in the spiritual world. If you keep searching for answers, you will not be denied. If you thrist for knowledge and truth, you will not be denied.

BK is a wonderful thing, and we are all blessed to live in a country that give people second chances...

and this website has to go down as one of the best ever, because of all the headaches that it has saved people from...and I am sure that it has literally saved lives, and for that, rewards will be coming down from heaven, you can put that in your pipe and smoke it!

[Amy26]

Same, BK didn't open my eyes to the light or anything... it was just a means to an end to mainly get rid of my home which had tanked over 150k. I didn't really pay much attention to my credit before BK ... I just kinda used it whenever didn't really follow the "rules" for how to keep a good score etc... my credit actually looks a lot better now than it did before I filed. I have always paid my bills and never had any lates or anything on my file but since BK, I have learned a lot about credit. I have learned how to better use it to my advantage then letting it rule me. I have learned about scoring buckets, how trade lines should report, how to remove things from your credit... including inqueries. And most of all, how to get some good credit union love!

[discombob1]

I think another thing I've learned reading this and the Banks Won't Help thread... credit can be an emotional topic. For those of you who can remain dispassionate and objective, more power to you. Credit is a tool, but is a tool that must be used wisely. Thanks for sharing your experiences!

[Logan]

I think another thing I've learned reading this and the Banks Won't Help thread... credit can be an emotional topic. For those of you who can remain dispassionate and objective, more power to you. Credit is a tool, but is a tool that must be used wisely. Thanks for sharing your experiences!

It is a tool. I've been chastised on this site because I charge anywhere from $3k to $5k a month on my credit card even though I pay it off every month and I earn cash rewards. I use it for everything for a few reasons. I get cash rewards, I float the money so I earn more interest on my money in the bank (3%), I can easily see where all my money is going through mint.com and quicken and I have the dicipline not to over spend and pay it off every month.

Credit is a tool.

Logan

[considering7]

I agree with Logan, credit is a tool. I was always financially responsible, paid my credit cards off in full, never had a late payment in 20 years. In my case I had a business that tanked and left me saddled with debt that i had personally guaranteed. The experience of borrowing alot of money, running a business during the "Great Recession" taught me to be more careful with borrowing money for a business. If I ever open a business again - I'd be much more careful about how I guarantee the debt and be more careful about minimizing he debt and shielding my personal assets from the risk that the business has. The BKwas just a way to get rid of the debt. The BK itself, didn't teach me anything though.

[thereshope]

One of HHM's replies started me thinking. I do believe I have learned a lot from my BK, or more precisely from the actions leading up to my BK. However, I started wondering what I learned about credit. I'm curious to hear what others think.
?

I made what ended up being some poor investment and business decisions using my credit. It's taught me to never allow anyone else use my credit unless I have the cash to pay it off completely and can part without my cash no matter what. But if I can't afford to pay it off when I buy it, I won't buy it.

[iswmle]

I am not sure what I have learned on the credit aspect yet... but with money in general it has taught me to live a more frugal life and how to budget. I monitor my checking and savings very carefully. I pay myself first and then my bills. It has even affected me that I am a more cautious driver because my car will have to last me for years to come and gas is expensive! It occurred to me about a week ago that I no longer live paycheck to paycheck. Sometimes things get tight, but I know all is ok because my bills are paid, my car is satiated on fuel, and I have a savings that continues to grow.

[Peeps]

Before the BK I was oblivious to how "enslaved" the western world seems to be to FICO scores. I've run into a number of people who are ideal candidates for bankruptcy but they absolutely refuse to even consider it... even if it means sweating over financial stresses until the day they die.

I know there are plenty of good reasons to avoid filing a BK if at all possible, but "it will hurt my credit score" is one that now truly baffles me. I guess it took a very humbling BK to help me learn just how encultured the slave-to-my-fico-score propaganda has become. It's kinda sad to see just how much credit affects our individual opinions of self worth.

[Cgriswold]

I think Logan nailed it.

Well done.

[iswmle]

I find myself still trying to break free of the mentality that because I can't get approved for credit I am somehow less worthy... ugh...

[Logan]

I find myself still trying to break free of the mentality that because I can't get approved for credit I am somehow less worthy... ugh...

Think of it like dating.

[Amy26]

Think of it like dating.

Won't that make it worse? ;) Hehe.