CC pre-bankruptcy

[mizzmonick19]

I plan on filing a Cht. 7 bankruptcy very soon (4 weeks from now)... and I was wondering should I apply for a cc before? I had 3 cc's which will be IIB and they haven't been active since about 2007? Should I just wait? I know this is a crazy question? Here is my plan post-bankruptcy filing, I will have only the student loans left on my cc and no other open accounts. So should I start paying on my student loans now? But I read somewhere, that if you start paying on your student loans before you finish school, it won't report on your CR. It will just show the balance of the loans decreasing... and it won't build credit. IIDK, I'm confused... I need a little direction.

Thanks!

[Anonymous]

You absolutely should NOT apply for a credit card when you are planning to file for bankruptcy.  Any purchases made with said card will be considered fraud.

You should pay your student loans when you can pay them, but be careful of making big payments right before filing for bankruptcy.

Any credit cards you have at the time of filing must be included in your bankruptcy, so do not, do not, do not go out and get another credit card.

[mizzmonick19]

Thank you for your response.

I just wanted to start rebuilding my credit... so when is the best time to reapply for a cc or should I wait until an offer is given to me in the mail?

[Anonymous]

Most people will say to wait after the discharge comes through, is listed on your reports, clean up your reports and wait at least 6 months to apply for cards. That will give your new fico a fighting chance to get a decent limit on a new card. Which is better, an Orchard card with $300 line after the discharge or 6 months-1 year after the discharge for an unsecured card with $1-2k limit? Your call. I guess it really depends on your fico pre-bk, as some people might have a very low score pre-bk and will take longer to rebuild it, then a $300 orchard is a good idea to get some credit showing, then work your way up slowly.

[mizzmonick19]

Thank you for your reply michael_86

I think I will wait the 6 months and apply at my cc (Navy Federal) they have a secured cc (nRewards) that I can apply for. I need to order my FICO score so I have an idea what type of mountain I will climbing. I hope to have my bankruptcy filed within the next 4 weeks, once it is filed how long did it take for you to receive your discharge? I just want to get this part behind me so I can begin again!

[Anonymous]

Wait until after your discharge before you worry about getting new credit.  Build slowly and carefully and make sure not to make the same mistakes again.

Re: people with lower scores to start with having more trouble -- this is actually inaccurate.  Someone with a relatively high FICO score falls a lot further than someone who files with an already low score.  A low score might only take a small hit after filing a bankruptcy, while a high score can take a 100-150+ point hit.

[Anonymous]

Well I just filed my chapter 7 today, my 341 meeting is 8/25 and hoping to get it discharged sometime at the end of October/November. From filing to BK discharge it can take 90-120 days if you're lucky (your 341 is within a month of your filing, then creditors have 60 days to reply with objections, then up to the judge/court, based on their backlog) but it depends on the court's backlog as well. I have read about people not getting a discharge for up to a year after they filed in some horror cases.

I know how you feel, but definitely do not apply for credit before the bk or during, then you can get your bk filing rejected! File as soon as you get everything together, be honest, and work on rebuilding after the discharge!

[MarineVietVet]

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@Anonymous wrote:

Wait until after your discharge before you worry about getting new credit.  Build slowly and carefully and make sure not to make the same mistakes again.

Re: people with lower scores to start with having more trouble -- this is actually inaccurate.  Someone with a relatively high FICO score falls a lot further than someone who files with an already low score.  A low score might only take a small hit after filing a bankruptcy, while a high score can take a 100-150+ point hit.

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Here is information about that very thing:

Credit missteps

From a BK years ago to:
9/09 EX pulled by lender 802
3/10 EQ- 800
6/10 TU -772

You can do the same thing with hard work

Credit Scoring 101
Common Abbreviations
Frequently Requested Threads
Whats In Your FICO Score

[Anonymous]

Good info marinevietvet