How fast does your credit start to tank? plus rent Q

[weRN2deep]

Hi, we missed our first cc payment Aug 23 and have 2 more we're missing in the next few days.

We are trying to find a new apartment now before the stuff hits the fan. We have given notice and have to find a place by end of Sept. So how fast will all the bad stuff hit the fico, etc? We have never missed or been late and last week had 710 and 725. I'm only concerned in the case where a potential landlord might pull. I went ahead and printed our cred reports and ficos and will try and give them those... but just curious.

Also, on the rental - the rents in our area for a 2 bd (we are currently 1) are about 400-500 more per month. Is that going to look funky when we file that we go into a higher rent? Will it look fishy we can't pay our bills but can pay more rent?

We currently pay 1200 and most places we like are 1500-1700.

Thanks in advance.

[destitute]

My credit was 707 before I missed payments. They won't report until you are 30 days past due so if you can find something before September 23rd nothing will show on your credit. I had 3 payments go past 30 days before I filed chapter 7. My credit score went from 707 to 640 and then after filing dropped to 565.

If you have a reason for needing a 2 bedroom then I think you would be fine.

[2manybills]

Mine was 720 until we were 30 days late and then it went to 650 and now since we filed 545.

We did the car deal and got a good car before our credit went down. The stress of not figuring out how to pay these bills is way worth it to me.

[OhioFiler]

Credit scores are meaningless unless you're actively searching for new debt.

[2manybills]

I agree. When we closed our bofa account, and moved to the credit union, they gave us a credit card with $5K on it. Used it once for gas before we filed and paid it instantly. Curious if it will survive the BK.

Either way, it's fine by me.

[lrprn]

Just wondering....since you are surrendering your house when you file, it might make more financial sense in the long run to stay in the house not making house payments and save that money every month until the auction is scheduled.

This way you'll have a great deposit to give a future landlord! Offering 2-3 months rent in advance will change a lot of landlords' minds when asking them to rent to you after bankruptcy.

The experience of members here on the board is that the big rental complexes are the most likely to discriminate against those that have filed bankruptcy. The smaller operations and private individuals are much more likely to overlook the bankruptcy. In today's poor economy, suddenly a lot of landlords are much less squeamish about renting to former bk'ers. Income is income

Consider staying in your house after filing and saving thousands of dollars rather than rushing out to rent now. Depending on your state, you could have many months rent-free and start your new financial life with a nice kitty of cash.

[mike258]

Consider staying in your house after filing and saving thousands of dollars rather than rushing out to rent now. Depending on your state, you could have many months rent-free and start your new financial life with a nice kitty of cash.

This is good advice. I'm still living mortgage & rent free.

[destitute]

lrprn.. great advice. I agree completely however I believe the OP is moving from one apartment to another and no house is involved.

[bkmaggster]

Credit scores are meaningless unless you're actively searching for new debt.

Unfortunately, they are important for getting a rental in So Cal. Even from the smaller landlords, who will change rent and deposit rates based on credit scores. I do not miss living there!

OP - you are smart to try and find a place before your score goes down.

[frogger]

This way you'll have a great deposit to give a future landlord! Offering 2-3 months rent in advance will change a lot of landlords' minds when asking them to rent to you after bankruptcy.

I agree to a point, however.......

What if you were giving all of this extra money to me? I'm broke! How about all of those other landlords that are out there broke and one step away from foreclosure? And, from a landlord point of view, if you were to be a problem tenant, it would be difficult to evict you if you were paid up.

I think that the extra money available as a deposit is a great idea, just be careful about who you give that money to.

Good luck.

[weRN2deep]

To clarify, we do not own a house... and the move is imperative as our lease is up Nov 1 and we are not happy at our current spot (we refer to it as crazytown but that's another oprah). Our lease offers the ability to break with 30 days notice as we've been there 3 years.

I agree about the So Cal rent comment from bkmaggster, around here people DO care about cred scores, and will charge more deposits, etc. I would rather just move in before all the badness begins and get a real clean fresh start.

Most of the $ will roll back into the new rental and what is left will go in savings, which we currently have ZERO of and since our assets are almost null & void I think it can be worked into a wildcard or something... it'll be 2400 minus whatever we pay to new place for deposit.

[weRN2deep]

My credit was 707 before I missed payments. They won't report until you are 30 days past due so if you can find something before September 23rd nothing will show on your credit. I had 3 payments go past 30 days before I filed chapter 7. My credit score went from 707 to 640 and then after filing dropped to 565.
If you have a reason for needing a 2 bedroom then I think you would be fine.

So I'm thinking that when the calls start coming in, we just dodge them for the first 30 days (or until we have a new rental signed) and not give out the attorney's #? Maybe that can stall a bit before things get to the cred reports?