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New Member
Kittendale
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
TRC2k13
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
Countingpennies
Posts: 465
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
TRC2k13
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.
Senior Contributor
DaBears
Posts: 3,930
Registered: ‎10-26-2012
0

Re: Applying for Credit while in Bankruptcy

+1 good answers. You need permission first.

Valued Member
NotTellinYou
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

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Regular Contributor
y0rascal
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
CycleNKY
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
resetme
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
CycleNKY
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!

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