Q: Can I apply for a credit card if I have received my chapter 13 discharge but not my final decree?
A:
Of course, you can ask for anything, but in my experience, creditors are quite leery of recent bankrupt debtors.
All creditors, in my experience, will insist upon a Discharge first, and many will want to see the final Decree and close of your bankrupcty case before considering your Application.
In addition, most credit card issuers will only issue "secured" credit cards to recent bankruptcy debtors. With secured cards, the issuer requires your payment in advance (which becomes your credit limit), then charges you interest (for the use of your own money!) for any use of the credit card. In other words, they're a bad deal.
Over the next several months, you will receive offers from credit issuers. You should probably wait to receive and consider those before you pursue any offers. It will take some time to restore/rebuild your credit rating.
A: Yes.
A: Your discharge is your final decree. Post discharge, you can do as you please. But getting back into debt destroys the work you did to get out of debt.
Lawyers, want to be a Justia Connect Pro too? Learn more ›
- (916) 704-3009
- View Profile
- Answered
A:
It's possible to apply for a credit card after receiving your Chapter 13 discharge, even if you haven't received the final decree yet. However, keep a few things in mind:
1. Credit score: Your credit score may still be low due to the bankruptcy, which can make it more difficult to get approved for a credit card.
2. Limited options: You may have to apply for secured credit cards or credit cards designed for people with bad credit, as these are more likely to approve your application.
3. High interest rates and fees: Credit cards for people with bad credit often come with high interest rates and annual fees.
4. Timing: Some credit card companies may prefer that you wait a certain period after your discharge before applying.
5. Impact on your credit: Applying for multiple credit cards in a short period can lead to hard inquiries on your credit report, which may negatively impact your credit score.
It's essential to carefully consider your financial situation and ability to manage credit responsibly before applying for a new credit card. If you decide to apply, be sure to compare your options and choose a card with the most favorable terms for your circumstances.
Justia Ask a Lawyer is a forum for consumers to get answers to basic legal questions. Any information sent through Justia Ask a Lawyer is not secure and is done so on a non-confidential basis only.
The use of this website to ask questions or receive answers does not create an attorney–client relationship between you and Justia, or between you and any attorney who receives your information or responds to your questions, nor is it intended to create such a relationship. Additionally, no responses on this forum constitute legal advice, which must be tailored to the specific circumstances of each case. You should not act upon information provided in Justia Ask a Lawyer without seeking professional counsel from an attorney admitted or authorized to practice in your jurisdiction. Justia assumes no responsibility to any person who relies on information contained on or received through this site and disclaims all liability in respect to such information.
Justia cannot guarantee that the information on this website (including any legal information provided by an attorney through this service) is accurate, complete, or up-to-date. While we intend to make every attempt to keep the information on this site current, the owners of and contributors to this site make no claims, promises or guarantees about the accuracy, completeness or adequacy of the information contained in or linked to from this site.
