New credit card after bankruptcy

[MELLISSAMM]

I wanted to start rebuilding my credit asap. My BK was discharged on 02/08/12. I applied for an Orchard credit card today and was approved...$300 19.99%. Is it ok that I did this before my case is closed? I'm freaking out now.

[mountanddo]

Two questions come to mind. 1. You belong to a BK forum, why didn't you ask first before applying? 2. Why didn't you just wait until you were closed to apply. I can't imagine that it would of made that much difference in time for rebuilding your credit.

I don't know the answer but hopefully for your sake it isn't going to hurt you.

[IBroke]

Is it ok that I did this before my case is closed? I'm freaking out now.

Yes, it is OK. Since your BK only applies to debt obtained prior to filing, it is between you and Orchard.

[Logan]

My suggestion is do not make any impulse decisions which I'm guessing applying for this credit card was since you're feeling some regret.
2nd, slow down. It's good that you want to rebuild your credit but you are still going through a BK so let that close before you do anything else and remember rebuilding credit takes years not days.
3rd, be careful and don't ever carry a credit card balance again!!!!

Good luck

[MELLISSAMM]

My intention was not to charge up the credit card or go on a shopping spree. I just want to rebuild my credit. I probably acted too quickly and will not be applying for anymore credit. I don't want it to screw up my bankruptcy. I've done some research and have seen that people are free to obtaining credit after filing. Hope it's ok. Thank u guys for your help. I probably should have asked before applying though.

[mountanddo]

My intention was not to charge up the credit card or go on a shopping spree. I just want to rebuild my credit. I probably acted too quickly and will not be applying for anymore credit. I don't want it to screw up my bankruptcy. I've done some research and have seen that people are free to obtaining credit after filing. Hope it's ok. Thank u guys for your help. I probably should have asked before applying though.

I'm sure people know this but if there are any newbies here...it is not ok to obtain new credit after filing a Chapter 13. You have to wait until it is finished, discharged and closed. Any new credit or debt - within reason - obtained needs approval from the trustee. I've seen people get secured cards though while in a 13 so I'm not sure about that.

[MELLISSAMM]

Mine was not Chapter 13. It was Chapter 7

[Nicollette]

I'm sure people know this but if there are any newbies here...it is not ok to obtain new credit after filing a Chapter 13. You have to wait until it is finished, discharged and closed. Any new credit or debt - within reason - obtained needs approval from the trustee. I've seen people get secured cards though while in a 13 so I'm not sure about that.

In my confirmed plan, I only need to get the Trustee permission to incur debt, for anything $500 or more.

[OhioFiler]

Two questions come to mind. 1. You belong to a BK forum, why didn't you ask first before applying? 2. Why didn't you just wait until you were closed to apply. I can't imagine that it would of made that much difference in time for rebuilding your credit.

I don't know the answer but hopefully for your sake it isn't going to hurt you.

1) The poster was anxious to see if she qualified for credit.

2) Some times it take quite a while to close a case. Why would she have to wait until her case is closed to apply for credit?

[mountanddo]

1) The poster was anxious to see if she qualified for credit. I guess since she applied 3 days after she was discharged.

2) Some times it take quite a while to close a case. Why would she have to wait until her case is closed to apply for credit?

Common sense tells me that it might be a good idea to wait until your bankruptcy is completely behind you, discharged and closed, before you should apply for new credit. Why take the chance of getting denied? I guess I don't understand the need to jump back on the credit train days after you've just gotten rid of your debt. But I guess that's just me...

[Flamingo]

I wanted to start rebuilding my credit asap. My BK was discharged on 02/08/12. I applied for an Orchard credit card today and was approved...$300 19.99%. Is it ok that I did this before my case is closed? I'm freaking out now.

Orchard Bank is one of the bad credit creditors that charge yearly fees and higher interest, with a low initial limit. Most people start with this card. I see your fee is higher than when I applied after my Chapter 13 discharge (it was 14.99% in fall of 2006). You need to be careful now applying for too much credit. You are now debt free and should start saving instead of worrying about credit. Time is your friend after BK. It will take several years before you fully recover and BK never really goes away as you will find out. Use this card now and then and pay it off way before the due date. Be careful now with credit as many creditors, as time goes on, realize that now you cannot file BK for another 8 years and you are now debt free so be careful or you will find yourself back on this forum in 8 years wondering what happened. Best of luck to you...

[OhioFiler]

Common sense tells me that it might be a good idea to wait until your bankruptcy is completely behind you, discharged and closed, before you should apply for new credit. Why take the chance of getting denied? I guess I don't understand the need to jump back on the credit train days after you've just gotten rid of your debt. But I guess that's just me...

We're not closed yet. We're discharged. We have applied for and received 4 credit cardswith zero turndowns since we were discharged late January . We now have $3,750 of available unsecured credit as well as a $16,000 car loan. We are in the process of establishing new trade lines before our BK7 is closed but I guess that's just us...

[CCsAreEvil]

Well, I could not wait until our case was actually "closed". We are almost 2.5 years out from initial filing and the case is still open.

However, for me, I thought it would be best to at least wait until discharge (which is what we did). My 1st card I believe was Orchard. I honestly don't know what my interest rate is.. I think it's around 25%. But it doesn't matter since I haven't paid 1 cent of interest since we opened it 2 years ago.

The only thing is that I'm convinced it's impossible to get the annual fee removed (for Orchard). So far, I've been successful in them getting my $59 AF dropped in half to $29.50 for 2 years so far. So basically, I'm paying $2.50 a month to have this card. Is it worth it? I guess that can be determined on an individual basis. It's hard to tell if it was a factor in my score getting raised. At least I was able to land a car loan deal at 2.9% interest (2 months ago).

[MELLISSAMM]

Wooooohoooooo my case was closed a few days ago

[Flamingo]

Well, I could not wait until our case was actually "closed". We are almost 2.5 years out from initial filing and the case is still open.

However, for me, I thought it would be best to at least wait until discharge (which is what we did). My 1st card I believe was Orchard. I honestly don't know what my interest rate is.. I think it's around 25%. But it doesn't matter since I haven't paid 1 cent of interest since we opened it 2 years ago.

The only thing is that I'm convinced it's impossible to get the annual fee removed (for Orchard). So far, I've been successful in them getting my $59 AF dropped in half to $29.50 for 2 years so far. So basically, I'm paying $2.50 a month to have this card. Is it worth it? I guess that can be determined on an individual basis. It's hard to tell if it was a factor in my score getting raised. At least I was able to land a car loan deal at 2.9% interest (2 months ago).

Orchard will not remove any annual fee. I tried with the card I had. You will have to close the account to get rid of the fee. You have to figure out if your yearly fee is worth keeping the card.