• Spectacular!

    I liked your fast, friendly service. You were all knowledgeable in the area of bankruptcy. Your treatment of me as a client was spectacular! You were great at promptly responding to my questions and concerns. I loved that you provided courteous and quick responses to all my questions.
  • Highly Recommended!

    I have worked with Seth and he is the utmost professional in how he works with his clients. If you need an attorney you can trust I would highly recommend the Law Office of Seth Hanson.
  • Very Professional.

    Everyone was very professional and efficient. Seth, and everyone that I had contact with were very knowledgeable. I was very pleased with how we were treated by his staff. My questions were always answered promptly. I was very pleased with the service I received and would not hesitate to refer someone to your firm.
  • Non-judgmental.

    You were very open and answered all of my questions. You never made me feel like I was asking a dumb question. I was comfortable with your knowledge of the law. It was hard for me to make this decision to move forward in my life. Everyone was friendly to me and respectful. Non-judgmental. Every question I asked was answered promptly and appropriately. I would recommend you.
  • More Than Expected!

    I found the firm's representation to be more than what I expected. I was always kept in the loop, all my questions were answered (whether or not I asked more than once the same question), and I felt completely supported by the firm staff when going through this (at times) scary ordeal. Thank you again.
  • Very Impressed!

    I liked that you had very friendly, caring staff. You were all very knowledgeable. Your treatment towards me was excellent and you quickly responded to all my concerns. If a friend asked of your overall impression, I would say that we were very impressed and we would recommend you to them.

Who Needs Fico

An excerpt from Life After Bankruptcy by Seth Hanson

You might think I’m crazy by telling you to stop worshiping at the altar of your FICO score. But, let’s think about it. Debt is bad. Credit is bad. The only way to have a “favorable” FICO score is to carry debt. And the last thing you want to do is pile up debt. It might start out as just a few hundred dollars, then a few thousand, and before you know it, you’re back in major trouble.

Debt has not been your friend. It never will be.

FICO is really just a scam. In the calculation of your FICO score, debt history counts for about 35 percent of your score, current debt about 30 percent, and length of time in debt about 15 percent. The type of debt is the final 10 percent. FICO doesn’t take into account your employment situation, past or current income, debt-to-income, cash on hand, or even your net worth.

Consider, for example, a multi-millionaire with no debt, no credit cards, and no FICO score. The millionaire might be able to buy a whole car dealership but could not get a loan to buy a single car from a conventional lender who relies on FICO scores. Seems backwards, right?

FICO has convinced the powers-that-be that being employed and having savings or a net worth in the hundreds of thousands, even millions, has nothing to do with credit worthiness.

Ironically, now that your debts have been discharged, you have likely received dozens of credit offers from lenders who make it exceptionally easy for you to borrow money from them. Seems strange, doesn’t it?

These lenders are not your friends. They know very well that you were used to using credit before your bankruptcy and they’re betting you’ll do it again. They also know that you won’t be able to file bankruptcy again for several years, so they can create a new “debt slave” if they can get you to take the bait.

In addition to not taking out any new credit, I recommend that you freeze your credit with Experian, Transunion, and Equifax. There may be a small fee to do so, but it is well worth it. Freezing your credit will make it so no one can access your credit score unless you unfreeze it. That will provide a lot of protection to you. No one can open a credit card in your name and no lender can check your credit without your permission.

Let’s say you agree with me in principle that it is dangerous to get back into debt to “rebuild your credit.” However, suppose in several years you want to buy a house. I have two suggestions for you. First, try to use a lender that does not require or rely on FICO. One such lender is Churchill Mortgage. Churchill is endorsed by Dave Ramsey and has a very good reputation. Please note that I do not have any affiliation with Churchill Mortgage and that I am not endorsing them. You may find other lenders willing to work with you without relying on your FICO score. Second, consider asking your lender to use an alternate credit evaluation service such as eCredable.

eCredable is a credit-worthiness calculator that looks at how well and consistently you pay your bills. They look at bills like rent, insurance, cell phones, etc. Their formula calculates an “A” to “F” grade that you can give to your lenders or landlords. Please note that I am not endorsing or advertising eCredable, but just letting you know about it if you think it can help. Find out more at www.eCredable.com

You’ve got a very clear choice, and one that I think is obvious. Stay on top of things financially or slide back downhill, riding the FICO sled all the way down. Ask yourself which path will give you peace of mind?

For more information contact your Modesto bankruptcy attorney.

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