Rate of Credit Score Fall

[henrut]

Two questions. Due to a lenders unwillingness to modify my mortgage, I was forced to file BK13 a week ago to save my house. Out of morbid curiosity, I'll be checking my credit reports and FICO score periodically. My score naturally dropped immediately upon filing (between 30 and 50 points depending on credit agency to the mid to upper 500's). My question is, will my score continue to drop as time goes on or has the worst already occurred?

My second question has to do with my wife's credit card. It's a single card with a small credit limit. She is not a party to the BK and we need a card for business travel. Can she add me as a second cardholder (not co-signer or co-responsible party) on her credit card or will the card issuer note my BK and cause problems? Thanks in advance.

[optimistic1]

Sorry I cant address your question, but I can say this.

As much as I would like my credit score to improve, unfortunately, it was the good score that I had, that lead me to so much trouble in debt.

I personally wish that it will not get good anytime soon, as it will tempt me to once again dig yet another hole I cant get out of.

I have come to realize that I cant handle it well, considering this is my second filing, (albeit this time is different though).

What is your reasoning as to why you want it to stay good? The refi?

What state do you live in?

The card issuer may ask her for your social security number anyway, and they might not allow it. Also, the FICO scoring model has changed the way it improves scores, and many used to use this trick to raise the credit score by being added as an authorized user, but it no longer works with the new scoring model.

[henrut]

Refi and not getting raped for necessary future loans (ie. auto) is why. Although I have no interest in amassing new credit card debt (I had $160,000 in cc debt when I filed due to divorce and job loss) or even obtaining new credit cards, a decent credit rating has its advantages. Don't know if or when I'll ever get there, though.

[optimistic1]

I see.

If you have the ability to do so, you can possibly modify your home loan to a FHA loan. There are stipulations, of which I know nothing about, but I do know the government has a program, I think its called Hope or something like that.

My suggestion for you with the future auto loans, is this.

Get a pre-approved financing before stepping foot inside a dealership, and put your foot down, because they generally hate pre-approved customers.

Why?

Because they play mind games with you, like, "oh your credit score is low", or, "you filed a BK in 20__", which gives them the excuse to artificially raise your interest rate.

That's right, artificially raise the rate, they do it all the time, and someway somehow, they are allowed to do this, even though the bank itself has approved you for a lower rate. This is how they make all their money, on top of all the other crap they add into the sales contract you sign, like "window etching fee", and bloated costs for extended warranties. They are the biggest scammers in the whole nation.

My tip for Obama, is to go after practices like these, which are totally scrupulous and unwarranted and detrimental to the economy.

[henrut]

The government programs were no help to me as, according to the loan servicer, I was too far underwater. The program I've been waiting for Republicans in the Senate keep shooting down... the bankruptcy judge loan modification.

The pre-approval route for auto loans is a good suggestion. Only problem is, don't you have to have decent credit to get pre-approved?

[optimistic1]

Depends on when exactly you are looking to buy I suppose. If your debts are discharged and you are complete with your 13, then you are less of a credit risk then before you filed, hypothetically speaking.

So, the pre-approval process should be able to be accomplished. But either way, you will pay more in interest, but just be glad you are paying any of the unsecured credit card debt anymore, its a toss up.