zlacker

In my case it was a credit score. I was in a bad motorcycle accident at 19, I defaulted on every loan at the time (vehicle + credit cards + medical debt) while I was busy learning how to walk again. 15 years later, I still couldn’t get a credit card for more than $250, told no to getting a mortgage even with a VA loan, etc. My credit score couldn’t get higher than 600 even after those defaults fell off my record. Now, I live in Europe and am trusted with thousands of Euros in debt if I want it. I can get a house without any issues…

That’s a fresh start that just simply was impossible in the US.

>>within+(OP)
Similar story for me, but in my case I was an idiot with undiagnosed and untreated mental illness and a $20,000 line of credit for no good reason. Blew through a ton of money and wasn’t making much either. Ended up saddled with medical debt after an accident. Medical debt has been erased but the others are still on top of me. I don’t need anything in the near future credit wise though it would be nice to have a line of credit in case of emergencies.

>>within+(OP)
> 15 years later, I still couldn’t get a credit card for more than $250, told no to getting a mortgage even with a VA loan, etc. My credit score couldn’t get higher than 600 even after those defaults fell off my record.

Fuck at this point let’s start throwing debtors in prison. At least we’ll shelter people who might otherwise be homeless.

>>the_on+Di
I mean the US does have debtor's prison. Fall behind in child support and you'll be thrown in jail, have your licenses revoked, property and vehicles seized, and passport confiscated. It won't be dischargeable in bankruptcy either. You then get to try and re-enter the labor market with a criminal record, and probably with even more arrears with looming further action. You basically become civilly dead.

IF you formerly had a very high wage job it can also be nearly impossible to convince a judge that your 'imputed income' should fall again, even if industry has shifted and you no longer can find those high wage jobs anymore. 20% of your pre-tax imputed income can easily become the majority or worse of your post-tax income if the bottom falls out of your industry, and then you are fucked.

>>within+(OP)
After 7 years your credit history should be empty. So likely you couldn’t get loans for lack of credit history. There is also no such thing as a VA vehicle loan. Many of us went through this same thing in 2012.

>>tekkni+X51
It wasn’t empty, but apparently only having credit limits of less than a few thousand dollars when you are making over a hundred k a year is a red flag. Also, just because you don’t see the negative things in your credit report doesn’t mean it still doesn’t affect your score. The US credit system is all kinds of fucked up. I’m glad I don’t have to deal with it anymore.

>>within+(OP)
Federal law stipulates that negative information can only stay on a credit report for 7 years although I was able to get much of it off before then. I opened up some secured cards and got some secured loans and now I have an 800 credit score and no problem getting credit. It is definitely possible to start over without leaving the country. I did have to do some research, but there are entire forums dedicated to credit repair.

>>within+2D1
> The US credit system is all kinds of fucked up. I’m glad I don’t have to deal with it anymore.

There is a law requiring the removal of debts over 7 years old. The only “report” that it would stay on is with an internal report with the specific bank.

>>tekkni+vv4
The missing caveat from my personal experience is that this was all years ago. Things are probably different these days, especially after the recession.

>>within+Wv4
Things are not different these days, this information comes from my experience from 2012. The 7 years law has likely been in place since before you were born.