New Credit Card while in Chapter 13

[ABC]

Anyone have success obtaining one ? I tried BestBuy online , but was a no go.
I don't want to apply at companies that aren't doing this.


(Please save all the "why" and "ask your attorney" comments. I want to rebuild credit and I got a prior blessing.)

[minan]

ABC: most of us on here would discourage anyone from getting new debt especially if you are in an active 13.

How far along in your 13 are you? What's the urgency to "rebuild" credit now?

[momofthree]

Was the "prior blessing" from the trustee?

You can probably get one from Orchard, but you'll pay massive fees (in the hundreds of dollars) for a very small limit.

How long ago did you file?

[Flamingo]

First, check with your attorney to see if it is OK for you to obtain credit during your 13. Many times Trustee permission is needed to incur debt over a certain amount or to obtain credit/loans.

BK friendly card companies from my experience:
Orchard Bank
Target
Wal-Mart
Old Navy

over the years you will receive more denials than acceptances until the BK comes off your credit report 7 years after filing. The BEST thing you can do during that time is ensure all bills (everything, utilities included) are paid on time, nothing ever late, etc. Be prudent and careful. The reward comes in the end. It's a long haul but worth it.

[ABC]

ABC: most of us on here would discourage anyone from getting new debt especially if you are in an active 13.

How far along in your 13 are you? What's the urgency to "rebuild" credit now?

You did not answer my question and you did exactly what I asked not to happen on this post.

[ABC]

First, check with your attorney to see if it is OK for you to obtain credit during your 13. Many times Trustee permission is needed to incur debt over a certain amount or to obtain credit/loans.

Thank you for the list.
YES , I checked with my attorney , hence my comment on a prior blessing.
NO , per attorney Trustee approval is NOT needed if $ 1000 or less as it's considered unsubstantial and incidental.

[ABC]

What's the urgency to "rebuild" credit now?

Let me add since you're so inquisitive...

I have an adjustable rate mortgage with a large adjustment coming right around the time I plan to wrap up this CH13. I plan to refinance into an FHA loan the day after it's done. However, I will need to have re-established credit (24 months is ideal) to do this.

This is called pre-planning. I hardly feel like a $500 or $1000 card would somehow lead to the previous spiral that $ 25000 or $ 35000 card approvals over the phone did. I am not late on anything else, paying ahead, using cash saved at home , etc.

[Cgriswold]

ABC...just wait until LSU dude, whatever, jumps on this bandwagon! Sparks will fly.

While I completely understand your thinking, historically this sort of query goes down in flames round these parts. And in some cases, for good reason. But expect to be jeered, poked, prodded and told you should never consider credit again. Ever. of course now I am exaggerating. But you get the picture.

[Exployer1234]

I have not heard of any CC's who let you obtain credit while going through a BK. The only chance you may have at obtaining new credit is by purchasing a new car. That would need your Trustees approval, because it is over the amount.

Good luck though in finding a company, maybe one will give you are card. Just keep applying and see what happens.

[Flamingo]

Thank you for the list.
YES , I checked with my attorney , hence my comment on a prior blessing.
NO , per attorney Trustee approval is NOT needed if $ 1000 or less as it's considered unsubstantial and incidental.

Your "comment" on my computer appeared far down from your posting (several spaces apparently added by you between your posting and comment) so I did not read it (thought it was a signature). There are only a few places that may give you a credit card during your Chapter 13 and Orchard Bank is one of them; depending on other factors or credit prior to filing, they could extend to you a low limit ($300 or so) initially but you will have to pay an annual fee of anywhere from $39, $59 on up. Also note that hard credit inquiries stay on your credit reports for two years so if you go crazy trying to obtain a credit card during your 13 and get denied, those hard inquiries cannot be removed and will look bad and could greatly affect future credit offers. A lot is situational as to needing a credit card while in a Chapter 13 and trying to rebuild credit is one of them but what will hurt you the most (as it did us) is the BK on your credit reports. Things get better after discharge and we now have stellar credit two years after the 13 was removed from our credit reports in April 2009.

I think what most people on here are saying or will try to say to you is what they feel and have found out - that the majority of folks who file BK, especially Chapter 13, don't ever want to see a credit card again but in real life, one is needed to help rebuild and many places still do not honor debit cards (i.e., hotels, rental cars, etc.). It's all situational.

[LadyInTheRed]

Just keep applying and see what happens.

Not a good idea. Numerous applications for credit can lower your credit rating. Better to find out the company's policy before applying. You might try calling company's before filing and asking if an active Chap 13 bankruptcy will cause rejection of an application.

ETA: Try Bankrate's list of credit cards for bad credit: http://www.bankrate.com/funnel/credi...0Credit&ec_id= Most cards listed are Orchard cards. A couple say they do not do a credit check.

[ABC]

Not a good idea. Numerous applications for credit can lower your credit rating. .

Actually if you apply within the same period , for the same type of credit (revolving,auto,home) it is scored same as 1 inquiry.

[ABC]

Flamingo, thanks.

I have been using VISA check card for hotels, etc but of course they don't "build credit"

[LadyInTheRed]

True. But continuously applying until you are approved could extend over too long a period to be scored as 1 inquiry.

[Exployer1234]

Not a good idea. Numerous applications for credit can lower your credit rating. Better to find out the company's policy before applying. You might try calling company's before filing and asking if an active Chap 13 bankruptcy will cause rejection of an application.

ETA: Try Bankrate's list of credit cards for bad credit: http://www.bankrate.com/funnel/credi...0Credit&ec_id= Most cards listed are Orchard cards. A couple say they do not do a credit check.

I understand this, but the OP is the one trying to get credit while in an active 13. Even if you just call and ask the company they are going to give you the run around and not give you a true answer.

Obviously it is risky while in an active 13 to have any credit inquiries and since the OP has stated that they want our opinions kept to themselves. So instead of giving my opinion on this case I simply stated to just apply. This is what they want to do anyway and regardless of the advice we give it is not going to make a difference

Rebuilding credit while in an active 13 is hard and really having a credit card should be the least of your worries to rebuild your credit. Sorry for the rant, but I just don't agree with obtaining credit while in an active 13 for any reason.