I am currently under Chapter 13. I want to know if it is possible to get a credit card, which one can help me to build up credit. Do I have to wait until discharge of BK.

Ms Monica Pagan

Answer – Probably not. You should aim for one after you have been discharged.

The type of cards you can get depend on how soon you apply for a card. If you apply fairly soon, you will have to go for secured credit cards. They require a modest fee and a collateral (usually $300) that becomes your credit line. Use it responsibly and within a year to 18 months, you should be able to get a no annual fee unsecured credit card.

If you wait for a year after discharge, you may be able to get a no annual fee unsecured card right away.

How soon your credit recovers also depends on what you have left after discharge. If you still have your mortgage or even your auto loan, then as long as you pay on time, you will rebuild your credit history pretty quickly and the immediate need for a credit card solely for rebuilding credit purposes diminishes.

Hope that helps.

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