Applying for Credit while in Bankruptcy

[Kittendale]

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,

[TRC2k13]

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.

[Countingpennies]

You need the trustee's permission to take on any new debt.

[TRC2k13]

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.

[DaBears]

+1 good answers. You need permission first.

[NotTellinYou]

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!

[y0rascal]

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.

[CycleNKY]

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!

[resetme]

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.

[CycleNKY]

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!