The ways bad credit has made my life difficult

[westcoastguy]

Credit is one of the things when you have it, it's no big deal. Those that have good credit, and haven't ever been turned down for a loan.. don't realize the turmoil it can cause.

 

Due to some unforseen challenges with a business partner, mine has taken a hit. It's been several years with crappy credit. Like many of you, I kinda got to the point of saying "screw it.. who needs credit. I make a good income, I'll pay cash for everything"

 

Scared to look at it, didn't want to know. And basically thought it was unfixable and I would have bad credit forever. Whatever...

 

I guess like someone trying to lose weight, you have to get to the point where you are just like "enough is enough" I'm doing something about this.

 

I've posted a few questions as I'm in the rebuilding process. Credit is still bad (mid 500's) but the goal is to get to 650 by the end of the year. Then just a slow march up as the report ages and I manage my balances.

 

Just in case you are one of the ones that isn't sure if you should fix your credit or put in the work. Here is a list of the ways having crappy credit has humiliated me, cost me thousand and thousands of dollars and tons of missed opportunities.

 

- Interest rates. If I can get a car loan now. (which I just did, so I could rebuild) it cost me about 20% Thats thousands alone on this loan

-No access to credit cards. I have three cards now. With a total CL of $1,800.00 Really not enough to do anything with. Very limiting in emergencies etc. Sometimes not even enough to book travel for the family. Frustrating

-Home and Auto insurance rates are DOUBLE what I paid when my credit was in the 700's. Double. Homeowners policy is $600 a month. Every single month. Your insurance score is tied directly to your credit. Above 650. I'll pay $200/month

-Limited financial options for my life. I have $250k equity in my home that I'm basically frozen out of. No access to it. No one will re-fi for us, or get us a HELOC with our scores. So the ability to refi for a lower rate to save money, or pull cash out is non-existant

-Been denied a car rental before while trying to use a debit card. VERY embarassing. Dollar did a soft pull when you try to use a Debit card.. wouldn't rent to me.

-Can't co-sign for my kids on a car or School loan. Just find ways to dodge it.

-Being treated like a crimminal when applying for ANY kind of a loan. And being grateful for a $300 unsecured credit line. Sad really.

 

But. Enough of the pity party. Gotta take charge of this pile of steaming dog crap and make something out of it. Soldier on!

Edited May 18, 2018 by westcoastguy

[cv91915]

You definitely have the right attitude. Many things that are worthwhile are difficult and time-consuming.

 

When you reach your destination the journey is generally very much worth it.

 

Best wishes as you plod bravely forward.

[Scrappy44]

I was there about 5 years ago. 300.00 limit on a credit card that cost me 99.00 a year to have. Couldnt buy a home for my family, Couldnt buy a dependable car to drive to work and every little thing that happened seemed to take all of my emergency fund.

 

After reading here and learing the does and donts. Im now up to 770 credit score, 75,000 in credit card limits with zero balances, new cars and Nice home. You can do it, Just keep your head high and dont give up!

[westcoastguy]

I was there about 5 years ago. 300.00 limit on a credit card that cost me 99.00 a year to have. Couldnt buy a home for my family, Couldnt buy a dependable car to drive to work and every little thing that happened seemed to take all of my emergency fund.

 

After reading here and learing the does and donts. Im now up to 770 credit score, 75,000 in credit card limits with zero balances, new cars and Nice home. You can do it, Just keep your head high and dont give up!

Inspiration... thanks!

[TheVig]

It sucks, but you will get to where you need and want to be. Only credit card I had from 2009-until mid 2015 was a no AF $300 secured card. Crap credit and limited options.

[Whotheguy]

Been there, as others and yourself included, but with a plan, commitment and discipline, you will get back on your feet in no time. Hang in there and read everything you can her on CB, tons of knowledge.

[Tango60]

I am in the same boat but worse, I not only filed BK chapter 7 in 2011 I screwed the pooch and messed my fresh start up again royally. I do not have a home with equity...

 

I made a decision, good bad or indifferent and settled with ALL the the credit card companies that were charged off. I was at least 4 years out from any of them falling off my reports and honestly grew sick and tired of the humiliation you wrote about in your post.

 

One thing I had always done right was pay my motor vehicle loans perfectly and that saved me a few points when i had to buy a new vehicle. My new car auto rate is around 15%...

 

I have started again with a secured 1000 card through my local credit union, a 300 Discover secured and a 250 Capital One secured card. My credit scores are all in the really low 500s and my hopes are that I can increase them to the mid 600s within a year with timely payments and 0 balances on the cards, using them for gas and paying the balance as soon as the statements hit...

 

I feel your pain and look forward to hearing how things work out for you moving forward.

 

Sent from my SM-G965U using Tapatalk

[IndyPoolPlayer]

Bu....bu....bu...but.... DR !!!!!

[BlackKnight1983]

I of all people know how much having bad credit s**ks. I fell back in 2009, lost a job that I had for 20 years (the industry I was in dried up so I couldn't switch to a competitor), had a death in the family (and ended up with two households of bills). I needed a cell phone for work, and I really wanted a smart phone (it takes forever to text on a flip phone). The guy at AT&T checked my credit and told me he had never seen a higher initial deposit request (basically pay for the phone and two years of service up front, plus $1K).

 

I was traveling for work and had to stay in a hotel that didn't know me (I had deals worked out with the regular places I stayed at). They demanded a $250 credit card deposit (and I HAD to stay there), so I gave them a $250 cash deposit and was assured I'd get the money back the next morning when they checked the room... Nope! The manager deposited my cash in the bank, and I'd have to settle for a check, mailed out it 4 to 6 weeks. I ended up wasting 2 hours waiting for the guy to give me my money back and was late for work (I knew I'd never see the check). The guy 'drove' to the bank, but no cars left or entered the parking lot in the time he was 'gone', and it was remote enough to where you wouldn't be walking anywhere (and in the snow no less).

 

I got used to carrying crazy amounts (usually 10K, but as much as 30K) of cash on me, just in case. My wife was not pleased.

 

Funny thinking you can't get a CC for $100 but you have 30K on you (I was worried that a prepay card would just convert the deposit to debt repayment).

 

Now, things are much better. I have scores around 800, and around $175 in open limits. I can leave the house with a $20 and not worry.

 

Things get better if you work at them.

 

I used to dream of this card or that card... Now I have what I want and don't really apply for anything. For a time I was all about the CLI's now I don't really even care about those.

 

Good luck on your journey.

[cj123]

Wow what a journey the ending shows things always get better yeah now I dont think of limits either! But every now and then I do ask for a cli just to see