FICO 702 hard to stop paying cc

[Moneypenny]

Hi,

I finally sprung for my FICO score which is 702, including 18 yrs 5 mo on the oldest card, and 0 missed payments overall. My only negative is the large amount on my cards, close to max. Of course i would not be here without that.

But I am losing the nerve to not pay my cards. if i dont pay for 6 months prior to filing i will keep at least 9K in min payments. Now I am thinking is 9K a lot to pay for having my FICO go up faster after the BK?

We have two cars 10 and 15 yrs old and more than 100k miles on each. I might need credit again sometime.

So, I am losing my nerve and regretting losing the 18 year record. Some of this is irrational, I know. I always got A's on my report card too.

Any words of advice?

Mr. Moneypenny

[SocalBroke]

That was my biggest issue also (especially since my FICO took a big jump up right before I was about to file). I had to remind myself that I had already spent several years and way too much money trying to salvage my credit.

The hardest part was not paying that first bill. The minute that happened, it was done. My interest rates flew up to an astronomical number, late fees were thrown in, it truly became the point of no return and it was actually a relief.

As for maybe needing a car, I'm not even discharged yet and got a letter from a dealership who 'sympathizes' with recent filers and is there to 'help' should I need a vehicle.

[jribe]

i don't think there is a huge difference for people that stay current on their CC's, then file versus those who don't pay for a few months and file in regards to FICO. The bankruptcy will be a huge hit no matter what. You'll still be able to get a car loan after you file; after all- you have to wait at least 7 years to file again so you're a pretty safe bet. Just the interest rate will be bad. If you need to get new cars- i would do it now before your credit goes down. That's what i did. good luck

Hi,

I finally sprung for my FICO score which is 702, including 18 yrs 5 mo on the oldest card, and 0 missed payments overall. My only negative is the large amount on my cards, close to max. Of course i would not be here without that.

But I am losing the nerve to not pay my cards. if i dont pay for 6 months prior to filing i will keep at least 9K in min payments. Now I am thinking is 9K a lot to pay for having my FICO go up faster after the BK?

We have two cars 10 and 15 yrs old and more than 100k miles on each. I might need credit again sometime.

So, I am losing my nerve and regretting losing the 18 year record. Some of this is irrational, I know. I always got A's on my report card too.

Any words of advice?

Mr. Moneypenny

[RackingJ]

That was my biggest issue also (especially since my FICO took a big jump up right before I was about to file). I had to remind myself that I had already spent several years and way too much money trying to salvage my credit.

The hardest part was not paying that first bill. The minute that happened, it was done. My interest rates flew up to an astronomical number, late fees were thrown in, it truly became the point of no return and it was actually a relief.

As for maybe needing a car, I'm not even discharged yet and got a letter from a dealership who 'sympathizes' with recent filers and is there to 'help' should I need a vehicle.

Same here. The first one was the hardest and now its a relief because we've had so many unexpected expenses come up this summer. If I was still paying minimums I don't know what we'd do because we couldn't charge it since we were near limit.
It also helped ease my mind about not paying when they wouldn't work with us on car payments when I found out my hours were being cut & then laid off 2 mos later. Now, I feel no regret what so ever, they should've worked with me when they had a chance. ;)

[OhioFiler]

Let's say your FICO drops to 502 after BK without having paid your cc bills. Let's also assume your FICO drops to 602 if you do pay your cc bills before you file. Is that 100 points in your score worth $9,000?

Your credit score will climb nicely and relatively quickly after BK. Save the $9,000.

[Moneypenny]

that is how i am trying to size it up. but i dont really know if its a 100 point difference. i wonder what the difference is. and then there is also the difference in time it takes to climb higher. so it is a hard thing to calculate, unless you really know the scenarios.

probably its not worth 9k though

thanks!

mMP

[music12]

just make sure that the 9K will be exempt in your state; otherwise you could end up with a lower credit score AND lose the 9K to the trustee.

[ready2puke]

One of the hardest things for me when I decided to go the BK route was losing that 780 score and years of credit..Well after I realized I had no choice I also realized that the high fico score got me into all this mess and the credit cards..So? Now I will be all cash and it feels good..The only thing that will feel better is getting all this behind me. I still havent filed yet and have been dealing with all this for a year now..

[DownNotOut]

I wrestled with this for a long time as well. I really wanted to preserve my credit. It has been solid all my life (over 700). But when a cc decided to close my card because my balances on my OTHER cards (different company) were "too high" and then jack up my rate for that reason, I no longer had a problem not paying them. When I finally didn't make a payment it was sooooooo freeing! I felt so much relief! Of course my goal is to not ever use credit again, so I don't care about my score anymore. I know everyone's goals are different, so if you are worried about needing new cars, I agree with the suggestion that you get them now before you file.

[Moneypenny]

yeah, my 18yr plus card jacked me to 24% and then refused to work with me on it, even though i paid them probably two or three times what i borrowed, on time and ahead of time, for 18 years. Plus i borrowed money at one interest rate. I did not borrow money at 24%. Why would i do that?

so i dont feel bad about screwing them: quite the opposite! still there is the habit of always paying your bills.

i am in CA and believe i am exempt (neg equity in home). in any case i can definitely spend 9k on essential things in six months before i file no problem.

i am reticent to take a car loan at this point but my cars are really old... i guess we cant have everything perfect...

mmp

[SocalBroke]

i am reticent to take a car loan at this point but my cars are really old... i guess we cant have everything perfect...
mmp

Well, if you like your old clunker, you might not have to I like my little 01 Saturn (which is a good thing cuz I still owe about $3k on it) and really plan on keeping it. Of course, it started overheating last weekend so I had to bring it in. The cost to fix it....$700.00

On the bright side, that was still less than 1 month of minimum credit card payments that I used to make so I was able to pay for it with cash and not have to worry about paying for that repair for the next 10 years

It means I don't get to start building that 'nest egg' for another month, but after 10 years, what's one more month

[Moneypenny]

we driving 95 and 2000. its dicey but i figure every car payment i dont have is going toward a repair fund, or something like that. it feels better. but i could get screwed with no way to get to work and no possible bk for many years

[berrymom35]

Think of it this way..your "credit score" is really just your "debt score"...it tells potential creditors how you can handle you debt...not your finances...we plan to NEVER have another credit card for as long as we live...and we will always attempt to pay cash for older vehicles. I'm done with debt and with credit scores....if I need to get a loan in the future they can just do some calling to verify my employment and so on....

[music12]

but berrymom, it may be very difficult to get a loan if you stay out of the credit business completely, and a loan may be a necessity at some point and very hard to get just based on employment. i would suggest to have a credit card and use it once a month for a purchase of $50 or less, and pay it off each month. i think many people make this suggestion.

[jribe]

but berrymom, it may be very difficult to get a loan if you stay out of the credit business completely, and a loan may be a necessity at some point and very hard to get just based on employment. i would suggest to have a credit card and usements until filing. it's it once a month for a purchase of $50 or less, and pay it off each month. i think many people make this suggestion.

it sounds like you've made up your mind on the matter. i've seen many people that continue pay up to filing. its up to you..