Credit reporting

[tm0101]

i recently viewed my credit report and I noticed that everything stopped reporting when I filed chapter 13. This leads me to believe that even though, payments are being made to creditors, reporting for the accounts in chapter 13 doesn't get updated until the discharge.
if no new accounts are opened during the case, my credit score will remain the same. For anyone who has gone through this, can you shed some lights on this subject?
i once read a post where someone had a 600+ credit score at the end of his case, but he had opened new credit lines while still in chapter 13.
According to the guidelines, you're not allowed to open new lines of credit while the case is opened. However, it may be Essential to do so if a higher credit score is a goal at the end of the case.
I had planned on getting a secured credit card next year and see if it'll make a difference. I need one for hotel and car rentals anyway.

[LadyInTheRed]

Other than reporting that your accounts are included in bankruptcy and closed, most creditors do not report on your credit reports during a Chap 13 because it can be interpreted as an attempt to collect a debt. The payments made by the trustee will not be reported on your credit reports.

Most people will have a higher score at the end of a Chap 13 than at the beginning without doing anything. The goal of a Chap 13 should be to complete your plan. You can work on rebuilding your credit later.

Some courts do allow you to incur debt up to a certain amount while in Chap 13. Check with your attorney to find out what is allowed in your court. I am not an attorney, but the way I see it, simply opening a credit line is not incurring debt. My trustee does not allow any debt without prior approval. I opened a new account while in Chap 13, but didn't use it until my case was closed. It was an unsecured account with a $1500 credit line. When you decide to apply, try Barclays. In the meantime, you can use a debit card for hotels and car rentals. Not all car rental companies will rent to you and they will have different requirements for renting without a cc, so call around. Try Enterprise and Hertz. I have rented from both without a cc.

[tm0101]

Thanks. I'm curious to know what you're score was when you opened an unsecured credit line while still in a 13? How far along in the case were you? I'll look into Barclays.

[LadyInTheRed]

I was about 4 years into my BK. I only know what my CreditKarma score were. They were around 715 or 720.

[tm0101]

Ok, that's a long way from 500. Barclay wouldn't be an option for a cc at this point.

[LadyInTheRed]

Based on previous posts, it looks like you filed around 8 months ago. You'll need to go at least 1 year and probably 2 before anyone will give you credit. The negative stuff on your credit reports needs to further in the past.

Also, don't use my experience to determine what yours will be. I don't think my scores ever dropped below the mid 600s.

[karna68]

In Ohio you can't get any new credit over $1000 without approval.

[tm0101]

I'll wait a year to get a secured and 2 or 3 before I apply for a unsecured.....Maybe.