Using credit rebuilding services before vs. after filing/discharge

[nozar]

Typical advice is to start rebuilding your credit immediately after discharge.

But what about starting to rebuild it *before* even filing? There are several well-reviewed free services that do this, for example Grow Credit for bills, or Perch.app for reporting rent payments.

Any downsides to starting to rebuild one's credit with these services before filing, as long as they're free?

[bornfree2]

Typical advice is to start rebuilding your credit immediately after discharge.

But what about starting to rebuild it *before* even filing? There are several well-reviewed free services that do this, for example Grow Credit for bills, or Perch.app for reporting rent payments.

Any downsides to starting to rebuild one's credit with these services before filing, as long as they're free?

When you file you have to is ALL your creditors. Having even one is a PIA. For each creditor you must be responsible for getting their correct address (and responsible processing agent or attorney) for the mailing matrix. You must know what account number they use for you. You must know if you owe them any money. This may seem straightforward but digging up that information can take time.

Other than clerical management, (that must be 'true and correct') there is possibility you pay off one or two prior to filing. "hey ill just zero that one out, so i have these 3 big cards to discharge". Ops. you just provide preferential treatment to one of them making your case more complicated.

Basically, it would be pointless to have any. more creditors than necessary.

[justbroke]

Any downsides to starting to rebuild one's credit with these services before filing, as long as they're free?

I see no reason to deal with credit before filing. Personally, I would not use a third party -- other than my bank -- to pay any bill.

More importantly, the credit bureaus have been looking more closely at these companies that are able to report a tradeline to the bureau(s). The bureaus have specifically been targeting these credit-building companies because they aren't actually "proving credit worthiness" with some even openly stating that they don't require credit or run any sort of screening.

(The bureaus have shutdown a few major credit builders already. It will be interesting as they look to something like Grow Credit.)

I would stay away from this as it is just one more thing to complicate your life.