Reply
New Member
Posts: 3
Registered: ‎04-12-2013
0

Applying for Credit while in Bankruptcy

I am a new member at Myfico.com. 

 

Is it safe to apply for a secured credit card through my Credit Union while in a chapter 13.  How will it affect or improve my score?

 

thanks,

Regular Contributor
Posts: 218
Registered: ‎03-02-2013
0

Re: Applying for Credit while in Bankruptcy

You are not allowed to apply for new credit (secured or otherwise) while under bankruptcy protection.

 

That's what I was told by my attorney.

 

 

Frequent Contributor
Posts: 486
Registered: ‎02-14-2013
0

Re: Applying for Credit while in Bankruptcy

You need the trustee's permission to take on any new debt.
Regular Contributor
Posts: 218
Registered: ‎03-02-2013
0

Re: Applying for Credit while in Bankruptcy

Yeah... Trustee's permission.

Good luck with that... It may happen with a house or a car because those are necessities... Don't see it happening with a CC.
Highlighted
Senior Contributor
Posts: 3,930
Registered: ‎10-26-2012
0

Re: Applying for Credit while in Bankruptcy

+1 good answers. You need permission first.

Valued Member
Posts: 43
Registered: ‎03-19-2011
0

Re: Applying for Credit while in Bankruptcy

Why would you want to do that?    You're CH 13 so you're repaying your debts which will help build your credit over time.  There's no reason to take on a secured card.  Focus on repaying your debts, living within your means, and building your savings.   THINK PAY CASH/Debit Card for the next few years.

 

Good luck!

Starting Score TU: 520
Current Score TU: 725. EX: 736. EQ: 719

Chase Freedom $12k, WellsFargo $4k, Barclay $5k, BCU $15k, Discover $5k, USAA $7k, Lowes $4k, Home Depot $4k, Citi $13k
Regular Contributor
Posts: 144
Registered: ‎09-25-2007
0

Re: Applying for Credit while in Bankruptcy

I went ahead and got a secured card and am currently in a chap 13 plan. I was told by my attorney that unsecured debts larger than $500.00 need to be approved by the trustee. so a secured card is fine to be obtained. Its hard to get a unsecured while your still in chap 13 but a day after chap 7 you can pick up unsecured cards right away. Weird how that works out.

Member
Posts: 17
Registered: ‎02-28-2013
0

Re: Applying for Credit while in Bankruptcy

I got a secured card 4 months prior to discharge. It did help my score Alot. I wish I had done it sooner, I wish I had gotten 3 from different banks!... I just discharged a 60 month Chapter 13 3 weeks ago. Scores are 690, 657, 648 lender pulled. In the process of pre approving a VA loan.

Good Luck!
New Member
Posts: 1
Registered: ‎12-18-2012
0

Re: Applying for Credit while in Bankruptcy

what paperwork do you need ,because I am a still trying to get one and my bankruptcy is over. I have my money sitti.g aside for it.
Member
Posts: 17
Registered: ‎02-28-2013
0

Re: Applying for Credit while in Bankruptcy

I didnt need any paperwork?? Just applied at fifth third bank, approved no questions asked. The minimum deposit / credit limit is $300 and it reports to the 3 major bureaus. You can add credit limit whenever you want in $100 increments.

Hope this helps!
Advertiser Disclosure: The listings that appear on myFICO are from companies from which myFICO receives compensation, which may impact how and where products appear on myFICO (including, for example, the order in which they appear). myFICO does not review or include all companies or all available products.
† Credit cards for FICO Score ranges: The score ranges are guidelines based on actual applicant approvals and having a FICO Score in a particular range does not guarantee you will be approved for credit cards recommended in that range.

Copyright ©2001-2015 Fair Isaac Corporation. All rights reserved.   | Terms of Use | Privacy Policy | Sitemap

IMPORTANT INFORMATION: All FICO® Score products made available on myFICO.com include a FICO® Score 8, along with additional FICO® Score versions. Your lender or insurer may use a different FICO® Score than the versions you receive from myFICO, or another type of credit score altogether. Learn more

FICO, myFICO, Score Watch, The score lenders use, and The Score That Matters are trademarks or registered trademarks of Fair Isaac Corporation. Equifax Credit Report is a trademark of Equifax, Inc. and its affiliated companies. Many factors affect your FICO Score and the interest rates you may receive. Fair Isaac is not a credit repair organization as defined under federal or state law, including the Credit Repair Organizations Act. Fair Isaac does not provide "credit repair" services or advice or assistance regarding "rebuilding" or "improving" your credit record, credit history or credit rating. FTC's website on credit.