Question on Credit Repair

[Coredatum]

Hi -

I'm in the process of having my Chapter 13 case closed, as the case has been discharged by the Trustee and I'm no longer making payments.

Question: Can I start the process of repairing my credit now, or should I wait until my case is closed?

Also, is there a way to repair credit that's considered best? For example, is opening a credit card the preferred method?

If there's a particular thread I should read about this topic, let me know. Thanks!

[sophieanne]

Congratulations on completing your plan. I would wait until your case is closed but it will take a few months before you could be approved.

[shipo]

Hi -

I'm in the process of having my Chapter 13 case closed, as the case has been discharged by the Trustee and I'm no longer making payments.

Question: Can I start the process of repairing my credit now, or should I wait until my case is closed?

Also, is there a way to repair credit that's considered best? For example, is opening a credit card the preferred method?

If there's a particular thread I should read about this topic, let me know. Thanks!

I made my last payment this last February, got the Discharge in March, and the case was closed in June. I initially followed the advice of many and got a Capital One Secured card; bad move; low maximum limit, and if you pay too often, they trigger Anti-Fraud and/or Anti-Money Laundering protocols on your payments and hold them for as long as 12 days before applying them to our account.

Having learned my lesson on low-limit Secured Credit Cards, I closed that one less than two months after opening it and went for a $5,000 limit secured card from my bank. Much better both in terms of flexibility and how it impacts your credit score. Said another way, having $450 charged on a card with a $1,000 limit looks bad to the credit agencies, having that same amount charged on a card with a $5,000 limit looks good to those same agencies.