My credit score is low!!?

Question

My credit score is 490 and i'm in the process of getting bankruptcy.
I dont know how life is after babkruptcy. I know things like car rates will be very high. How different will things be? i'm only 25 with two children, working and making 21,000 a year. I want to buy a used car soon but I'm scared of high rated including insurance. Will I be denied for everything? I only have a Macys card and that one is in good standing and will make sure it is. Any one can tell me how life will bw with low credit score and bankruptcy?

My total debt is over $10,000 because of stupidity and not being able to control my spending. I have a date already to meet the creditors.

Answer 1

Contrary to what other posters have said, bankruptcy will stay on your credit record for 10 years, not 7.

You will eventually be able to get credit after the bankruptcy though it may be a few months and the rates will be extremely high. It's actually not that hard to start rebuilding your credit after bankruptcy as lenders know that you CAN'T file again for 7 years so they will get something from you.

There's no way around the high rates and fees that you'll encounter; it's a fact of post-banrkuptcy life. Just take it easy on the expenditures and as your credit score inproves, ask for lower rates.

Answer 2

Hopefully, you're kids won't need you cosign for them for the next 7 years. That's how long bankruptcy stays on your record. Its not the end of the world though. I know quite a few people in bankruptcy and they were happy they did it. I think you're biggest worry is your ego (not that you have a big one or anything) but no one wants to say I'm bankrupt.

I'd advise you to cut up you're macy's card. Because to be honest it sounds like you don't have much self control. You don't NEED anything from Macy's you know. Especially when you're bankrupt.

It won't be hard to get a car. Just find a cheapee in your local newspaper. And get a personal loan. You'll probably need a cosigner though.

Look as long as you and your family are not homeless and are eating for the next 2 years, be a happy camper. Because its gonna be a slow climb back to where you want to be.

Answer 3

Expect to get denied for most if not all unsecured credit until your rating rises some.

Expect secured credit to have high interest rates, auto loans in the area of 16-21%

Bankruptcy will show on your credit for 7 years, but you will see a decline in the severity that it has on your credit within about 2 years if you keep your credit clean from this point on.

Do not apply for credit "everywhere and anywhere" this will lower your score, as it makes you look desperate and in need of money.

To help start raising your credit now, get a secured credit card that reports to the credit bureaus.

Get copies of your credit reports (experian, equifax, transunion), and dispute things on there that you find are not legitimate. Go to www.annualcreditreport.com to get a free copy of your credit reports.

If you have collections on your credit, and dispute them, you can often get them removed as it is more effort for them to investigate and locate the information that you requested, then to just cut their losses and have it removed. Be sure that when you dispute things that you make sure to ask for a copy of your signature stating that you owe this amount and that you agreed to those terms. Its a pain in the neck for them to find this stuff usually so it helps. Please note that is not legal to dispute things that you KNOW are legitimate... but if you forgot or cant remember that debt.... then its perfectly legal to dispute it and they must provide proof to you that you owe that debt. Only dispute a couple of things (two or three) per credit bureaus at a time, otherwise they may disregard your claims as frivolous attempts to clear your credit.

Make sure that your credit reports are all showing correct information. You would be amazed at how much mis-information is often found.

You could also go to the local library and look up books on credit card repair, and the effects that bankruptcy has on your credit.

Hope this helped some.

Answer 4

well it depends. you car rate will be extremely high, i would try to pt down as much cash as possible. Since bankruptcy stays on your credit for 7 years, you will more than likely be denied alot or have really high rates to where it really wont be worth it. I would just make sure to keep the macys card in good standing (my favorite store) it may help you rebuild your credit. My mom went through the same thing, but she made it through because she back to having like 6 or 7 credit cards, and 3 cars, but this time she actually learned how to pay them. I probably wasnt much help.. Good luck! :)

Answer 5

your score will never be lower than right after a bankruptcy.
You will be able to get financing, but you will have to pay a much higher interest rate for several years. Just curious, how much debt are you looking to discharge? You do realize that most of your debt will have to be repaid with the changes in the bankruptcy laws last October?

Answer 6

The bankruptcy laws have changed. In the past it would wipe away your debt, and you would have bad credit for seven years. Now the debt is not forgiven. If I were you I'd look into a debt consolidation agency. There are public ones to help good people like yourself pay off your debts without declaring bankruptcy.

Answer 7

terrible, just get ready to never be approved for anything . You can always get a car though , there are a ton of car dealers that could care less if you pay on it because they rather pick it up and sell it again and again and just making profit from down payments . the main thing is that if your children are in trouble finacially you can't co sign or help at all , you should try everything before filing bankruptcy

Answer 8

Why is your score so low? It must be because you are in some other kind of debt. Look closely at your credit report to see what's causing it. Look online for non profit debt counselors and debt consolidations. Have you already claimed bankruptcy? Is there anything else you can do before that resort?

Answer 9

The SECRETS that the Credit Bureaus
DON'T WANT REVEALED!
This is the credit repair service that i used and i got great results.Want a great credit score,
I increased my credit score to
over 700 using these free tips.Solve Your Credit Problems once and for all.
Go here for full story.Goodbye To Credit Problems.
Get every negative item Removed
In 1 to 3 Months - Guaranteed
http://ddp1.com/go.php?1539-17

Answer 10

This sounds unreal to me but it's your fault. You should have taken better care of your credit. It is going to be hard to find a car but there are dealerships that do not ceck credit, but the do not have a very good selection of vehicles. Macys is not doing too well in business either so good luck!