Hello, all! Haven't been to this site in a while, but decided to pop in, as it was my crutch during one of the most stressful events of my life. Can't believe my BK is almost 3 years old!! It doesn't seem like a lot of time, but, wow, does it make a difference. I am happy to report that 2.5 years later I am still credit card debt free, in fact the only debt I do have are student loans.... which unfortunately I will probably have to live with for a good portion of my life, but alas... Anyway, I wanted to share my experience so maybe it will help some people in their journey.
After my BK I made a set of rules and goals for myself that I have done by best to stick by:
1) No automobile loans... I am actually not entirely opposed to getting a car loan; but if I do I want to be sure that it would be paid off within a year. As it is, my car is paid off, very reliable, and will probably last me another several years. I am going to drive that car into the ground!!
2) No revolving debt... While I have applied and been approved for some credit cards, and have utilized them, I have NOT had any revolving cc debt since January of 2011.
If the card gets used it gets paid off when the statement is due. This being said, I have gotten sooooo tired of having to remember this or that bill, I have pretty much retired using a credit card for every purchase and switched to my debit. I still use cc for major, online, and some recurring purchases, but everything else is through the debit card.
3) Living within my means.... Wow. I remember a time when I would drive to the grocery store, park, and call my bank's automated line to see if I could afford what I was going to buy.... OR WORSE... knowing that I couldn't afford but having no choice and telling myself "I'll just have to eat the overdraft charge". Now I had stopped overdrafting my account even before my BK, probably around mid 2009... but I don't think I could officially say I have lived within my means until the last year and a half. I still check my bank account pretty religiously, but it is just more of a peek, and it is not the same "Ahhh, shit, how broke am I going to be after this store trip" apprehension.
***Eating out is still my downfall, though***
4) Savings!!... I feel like I have always been inclined to save but of course there is ALWAYS crap that comes up. In two years between my significant other and I have managed to save up 6K... and we are disappointed. We were hoping to have at least double that within two years. So this year we have decided that our goal every month is to save between $375-600. We are shooting for the max. My SO has another 4.5 years before he completes his doctorate, as it is our combined income is 31k. Even so, I think this savings goal is something we can achieve. Or, as I have to keep telling myself... This WILL be something we WILL achieve.
5) Sigh... student loans... had I to do it all over again, is all I have to say on that subject... I am on the income based repayment program which is pretty nice. I do pay over the amount, but not that much over. I really need to be more aggressive on paying those bad boys off, tbh. Coulda, woulda, shoulda...
Credit Cards that I accumulated post BK:
Addison Avenue Secured Card - $1000.... it was nice, but I eventually closed it when I felt it served its purpose. Got all my money back.
HSBC... $300... closed that one as well, never really used it that much, tbh.
Credit One... I think that it is what it was called, it looked like a Cap1 knock off... $300... closed it.
Capital One... $300... these guys declined me FOREVER after my BK, which was weird because I did not charge them off. So finally got one, I was enrolled in their improving your credit program. Did the steps thing, I just checked the limit it is $750. I don't think they increase it beyond that. I charge World of Warcraft to that card.
Capital One... Rewards MC... $1500... I was so happy when I got this about 6 months after my first Cap1. I use to use the hell out of it, but have retired it. It now sits at .28 cents credit (because I overpaid the last time) and gathers dust. I really should switch my WoW payment over to this one since I get rewards from it.
Apple Barclaycard... The first card to approve me with a decent spending limit. I think the credit line was $1200. I had not used the card in almost a year, and during the Christmas season they sent me a 0% offer. I was seriously thinking about taking it, and called them on a CL increase. Rep asked me how much I wanted, I got scared and lowballed (I said I wanted to be increased to $2500). She submitted it, and I was approved in an instant.... annnd as it turned out we had to make an unexpected last minute trip back to my home state, and the funds I was going to use to pay the card were spent on the trip. So I never got my MacBook, but such is life.
Victoria Secrets... lol, this card was pre BK and survived. I dunno how. I started out with a $300 credit limit, not sure what I am at now, but I know it is over $1300. I still love this card, but only use it like once a year.
Bank Accounts
We had American Express, USAA, Bank of America, and in the end I went with PNC Bank. I got tired of the online only bank real quick, and decided I DO like my brick and mortar bank. We opened up a Virtual Wallet account, and it is honestly my favorite bank. I love the VW app, and I like the format of having a Spend Account, a Reserve Account, and a Savings Account. Their customer service is pretty standard, not bad, not good, but people IN the bank are always amazing. They did do away with the Rewards program for their debit card, and I get the feeling most banks are going that route. My SO did apply and was approved for PNC's Rewards card, and they have been sending me offers as well, but I am scared to bite, and frankly I am trying to give my credit a much needed rest.
We still use USAA as a savings account, but retired Amex. My SO uses USAA credit card but I am planning on talking to him about retiring that one and using the PNC instead (which he has never used).
Credit Score
I have always been terrible about keeping up to date with this. Even when I was married my score was never above 650, it seemed. That was because we had SO MUCH DEBT. We were very much Keep Up with the Jones type of people. When I got rid of the ex I got rid of that 'tude as well. Still, I kind of hid my head in the sand when it came to my credit. I know my score dropped to about 550, right before I filed. After I filed and got credit it shot up relatively quick, first to low 600s, and then stayed at 633 FOREVER. In fact, it stayed at 633 for so long I got incredibly frustrated and stopped checking! I was tired of coming here, or going to other credit forums and peoples' scores were through the roof so quickly. I was checking through myFico and that was about $30 a month just to say "hey, no change!".
Recently I decided to check CreditKarma, and while I KNOW it is not as reliable as myFico it did say my score is now 690. I'll take that! Maybe next year I will get the desire to check MyFico, but as for right now I am content to think I am 10 pts off from 700.
And that is my story in a nutshell. I am sorry for the rambling, but I hope this helps anyone who is fresh out of BK and scared out of their wits. Life goes on! Your credit will recover... this is your new beginning.
TL;DR: I filed for BK, and I survived!!
After my BK I made a set of rules and goals for myself that I have done by best to stick by:
1) No automobile loans... I am actually not entirely opposed to getting a car loan; but if I do I want to be sure that it would be paid off within a year. As it is, my car is paid off, very reliable, and will probably last me another several years. I am going to drive that car into the ground!!
2) No revolving debt... While I have applied and been approved for some credit cards, and have utilized them, I have NOT had any revolving cc debt since January of 2011.
If the card gets used it gets paid off when the statement is due. This being said, I have gotten sooooo tired of having to remember this or that bill, I have pretty much retired using a credit card for every purchase and switched to my debit. I still use cc for major, online, and some recurring purchases, but everything else is through the debit card. 3) Living within my means.... Wow. I remember a time when I would drive to the grocery store, park, and call my bank's automated line to see if I could afford what I was going to buy.... OR WORSE... knowing that I couldn't afford but having no choice and telling myself "I'll just have to eat the overdraft charge". Now I had stopped overdrafting my account even before my BK, probably around mid 2009... but I don't think I could officially say I have lived within my means until the last year and a half. I still check my bank account pretty religiously, but it is just more of a peek, and it is not the same "Ahhh, shit, how broke am I going to be after this store trip" apprehension.
***Eating out is still my downfall, though***
4) Savings!!... I feel like I have always been inclined to save but of course there is ALWAYS crap that comes up. In two years between my significant other and I have managed to save up 6K... and we are disappointed. We were hoping to have at least double that within two years. So this year we have decided that our goal every month is to save between $375-600. We are shooting for the max. My SO has another 4.5 years before he completes his doctorate, as it is our combined income is 31k. Even so, I think this savings goal is something we can achieve. Or, as I have to keep telling myself... This WILL be something we WILL achieve.
5) Sigh... student loans... had I to do it all over again, is all I have to say on that subject... I am on the income based repayment program which is pretty nice. I do pay over the amount, but not that much over. I really need to be more aggressive on paying those bad boys off, tbh. Coulda, woulda, shoulda...
Credit Cards that I accumulated post BK:
Addison Avenue Secured Card - $1000.... it was nice, but I eventually closed it when I felt it served its purpose. Got all my money back.
HSBC... $300... closed that one as well, never really used it that much, tbh.
Credit One... I think that it is what it was called, it looked like a Cap1 knock off... $300... closed it.
Capital One... $300... these guys declined me FOREVER after my BK, which was weird because I did not charge them off. So finally got one, I was enrolled in their improving your credit program. Did the steps thing, I just checked the limit it is $750. I don't think they increase it beyond that. I charge World of Warcraft to that card.
Capital One... Rewards MC... $1500... I was so happy when I got this about 6 months after my first Cap1. I use to use the hell out of it, but have retired it. It now sits at .28 cents credit (because I overpaid the last time) and gathers dust. I really should switch my WoW payment over to this one since I get rewards from it.
Apple Barclaycard... The first card to approve me with a decent spending limit. I think the credit line was $1200. I had not used the card in almost a year, and during the Christmas season they sent me a 0% offer. I was seriously thinking about taking it, and called them on a CL increase. Rep asked me how much I wanted, I got scared and lowballed (I said I wanted to be increased to $2500). She submitted it, and I was approved in an instant.... annnd as it turned out we had to make an unexpected last minute trip back to my home state, and the funds I was going to use to pay the card were spent on the trip. So I never got my MacBook, but such is life.
Victoria Secrets... lol, this card was pre BK and survived. I dunno how. I started out with a $300 credit limit, not sure what I am at now, but I know it is over $1300. I still love this card, but only use it like once a year.
Bank Accounts
We had American Express, USAA, Bank of America, and in the end I went with PNC Bank. I got tired of the online only bank real quick, and decided I DO like my brick and mortar bank. We opened up a Virtual Wallet account, and it is honestly my favorite bank. I love the VW app, and I like the format of having a Spend Account, a Reserve Account, and a Savings Account. Their customer service is pretty standard, not bad, not good, but people IN the bank are always amazing. They did do away with the Rewards program for their debit card, and I get the feeling most banks are going that route. My SO did apply and was approved for PNC's Rewards card, and they have been sending me offers as well, but I am scared to bite, and frankly I am trying to give my credit a much needed rest.
We still use USAA as a savings account, but retired Amex. My SO uses USAA credit card but I am planning on talking to him about retiring that one and using the PNC instead (which he has never used).
Credit Score
I have always been terrible about keeping up to date with this. Even when I was married my score was never above 650, it seemed. That was because we had SO MUCH DEBT. We were very much Keep Up with the Jones type of people. When I got rid of the ex I got rid of that 'tude as well. Still, I kind of hid my head in the sand when it came to my credit. I know my score dropped to about 550, right before I filed. After I filed and got credit it shot up relatively quick, first to low 600s, and then stayed at 633 FOREVER. In fact, it stayed at 633 for so long I got incredibly frustrated and stopped checking! I was tired of coming here, or going to other credit forums and peoples' scores were through the roof so quickly. I was checking through myFico and that was about $30 a month just to say "hey, no change!".
Recently I decided to check CreditKarma, and while I KNOW it is not as reliable as myFico it did say my score is now 690. I'll take that! Maybe next year I will get the desire to check MyFico, but as for right now I am content to think I am 10 pts off from 700.
And that is my story in a nutshell. I am sorry for the rambling, but I hope this helps anyone who is fresh out of BK and scared out of their wits. Life goes on! Your credit will recover... this is your new beginning.
TL;DR: I filed for BK, and I survived!!
CLOSED 12/18/12
Comment