I would apply. I also filed Chapter 13 in 2005 with a 5 year repayment plan. I acquired an auto loan in 2008 and a unsecured Orchard Bank card in 2009. The auto loan was approved by the trustee and the credit card did not need trustee approval and I was also approved for the card with a $300 limit. Those two new trade lines helped jump start my recovery tremendously! By the time I was discharged in 2011, I had a credit limit of $1100 on the card and a year later was approved for a Capital One Cash Rewards card with a $2000 limit. The limit was raised to $2500 a couple of months ago. And I now have two more credit cards, a Chase Freedom and a Best Buy store card with limits of $1000 and $2500.
A 5 year Chapter 13 BK is too long of a period to wait to apply for a new credit. People need a car perhaps because one is aging and there are many other factors to why applying for credit before a Ch 13 discharge makes sense. One of those factors is the need to rebuild. The sooner you start, the sooner you will recover after BK 13 discharge.
I wouldn't have closed on a brand new home last month, have a brand new Acura TL with tier 1 lease financing, and 4 credit cards with a total limit of $7100 if I hadn't started the rebuild before discharge by establishing new credit.
Start now!
Cards: Orchard Bank ($1100) | Cap1 Cash Rewards ($2500) | Chase Freedom ($1000) | Best Buy ($2500) | Discover It ($1000) | Barclay Rewards ($2500) | Current scores: EX FAKO: 684, CK TU: 649, FICO EQ: 680, FICO TU: 698, FICO EX: 658 Happy Homeowner Since 2/6/13!
Last App: 4/5/13 Gardening until July 2014