Showing results for 
Search instead for 
Did you mean: 

Applying for Credit while in Bankruptcy

Frequent Contributor

Re: Applying for Credit while in Bankruptcy

I applied and was granted a secured card with my local CC when I filed Chapter 7, prior to my trustee meeting and discharge.


My CC canceled the card and refunded my deposit as I was in the middle of BK.  They told me to reapply after discharge and all would be good - which it was.  


Waiting sucks, but its better than a potential headache if the same happens.

Message 11 of 15
Regular Contributor

Re: Applying for Credit while in Bankruptcy

NotTellinYou wrote:

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!

Not exactly good advice, OP!  I'm sorry if I'm misinterpreting you "NotTellinYou" but your post comes off somewhat judgemental.    Why shouldn't the OP want to get a jump on improving his/her credit??  I don't understand the logic.


OP, the earlier you can start reestablishing your credit, the better it will be for you in the end! Yes, focus on repaying your debts living within your means, and building your savings but you MUST reestablish your credit also!  The only way you can do that is with new credit!  You must learn to properly manage credit and you cannot do that on a debit card/cash only basis.  Like other posters said, you will need trustee permission or if you have a lawyer, it's better to ask them.  I am truly speaking from experience!  A secured CC under $700 did not require trustee permission.  I opened one for $400 a year and a half into my BK, kept the balance under 80 bucks and PIF, on time EVERY month!  I haven't been discharged 6 months and my current scores are in my siggy.  I was also able to obtain unsecured credit once I received my discharge w/o going with the really bad rebuilder cards (Credit 1, Orchard Bank, etc).  I currently have American Momentum Bank (backed by FNBO) 2300 CL and NFCU 500 CL.  As long as its ok in your state, you can do it too. 

NFCU Cash Rewards $16,100/FNBO Platinum $9.100/Best Buy Citibank $2,500/Care Credit $7,600/TJ Maxx $1000/Neiman Marcus $7000/Saks5thAve $2500

Starting Score: 426 Ch. 13 BK Filed Sep 2009; Discharged Jan 2013 Smiley Happy
Current Score: TU 706 EQ FICO 701 EX 704
Goal Score: 720

Message 12 of 15
New Member

Re: Applying for Credit while in Bankruptcy

You want a simple answer and I will give a simple answer. 


Get a secured CC from your local credit union if possible or a good CC issuer. Don't fall to sub-prime lenders and I repeat DO NOT. 

Second, try to get family member to AU in one of their CC IF they have good history and balance. This will help out in your credit a LOT. 




Starting Score: 492-TU, 480-EX FICO , 495-EQ (06/12)

Current Score: 685-TU, 625-EX FICO , 675-EQ (02/15)

Goal Score: 700
Message 13 of 15
New Visitor

Re: Applying for Credit while in Bankruptcy

Just filed CH 13 last month....I need a secured card fopr business travel...I have been using our debit card and it's working OK, but requires you to keep thousands in the checking account for authorizations and even then it's problematic for car rentals.  Attorney advises that a secured card is NOT considered new debt because you are in effect paying for any debt you could incur in advance with the security, so no trustee approval needed.  


I am seeing that banks are not even opening secured cards for folks with an open BK which to me is ludicrous....the bank is printing money with these card products and has zero that said, who knows where I can get a card?  I really don't give a rat's ass about my credit score at this point, I just need to deposit $3k somewhere I can get a $3k credit line, use it for biz travel and pay it off every month.  Believe me I am not interested in carrying any more balances.

Message 14 of 15
New Member

Re: Applying for Credit while in Bankruptcy

I took are currently in a BK13, and actually ran into the same mountain, especially when it came to renting a card.  I tried getting a secured credit card with the bank I had been with for decades, and was declined.  Was told by my BK Attorney, that credit Unions are really good with Secured credit cards.  They do charge you a fee for every $100.00 that you want, but it's not much, which will also help establish your credit.   So whatever area you are in, i will check with the credit unions in that area and i can almost promise you that they can be of assistance to you.  The neat thing about this, is you can walk into the branch and pay the bill and it post the same day. 


Hope this helped,



Message 15 of 15