Dormant Storecard still works

TheGardener

Hi - I am currently undischarged. While clearing out the sideboard I came across a clothes store card I had prior to BR - I haven't used it since 2010 and it has had a zero balance on it since then. I had completely forgotten about it and thought I had cut it up when I paid off the balance years ago.
However, it doesn't expire until 2015 and, on logging onto the account online - it appears to still be active. As the credit limit on it is only £400, could I still use it? I don't want to rack up any credit but was thinking I could use the card after AD to start rebuilding my credit rating. What do you think?

longtermplanner

I can't see any disadvantage* to trying a test purchase after you are discharged. At that point you have no obligation to inform the lender that you have been bankrupt.

* Unless of course it means you are buying clothes that you either don't need or are more expensive than you would normally pay. In that case I wouldn't waste your money on trying to improve your credit score which is never going to be good for years no matter what you do.

TheGardener

I think I'll do that - its for a store that sells the sort of office clothes I would normally buy so I guess I can treat it like a CC and if it still works, I can pay the full balance every month .

I know everyone says there's no point trying to improve a CS and that CS's are useless etc etc but if that's the case - why are people advised to build their CS after AD and CRA clean up? The reality is I guess that all businesses make a judgement on a persons suitability and CS's are a just a part of that - but as they say - every little helps...:)

mattannar

Did you declare the account to the OR

alastairq

mattannar wrote: »

Did you declare the account to the OR

I see where you are going with this...but the fact an account isn't 'mentioned' at Petition doesn't alter the effects of the petition...

TheGardener

You've both lost me there - where would you be 'going' with that? There was no debt on an unused and assumed closed account - why would I 'declare it' to the OR? If I had been aware it was still active I would have mentioned it. I would have though that the account would have been visible to the OR with even a casual glance at my credit file or don't OR's look at CRA records?

wharty

If i was you i would just give them (The OR) a call and tell them you have found an unused store card that is still active. At least then there are no comebacks.

I am not sure what the rules are on using storecards and credit cards that were open before and during a bankruptcy once you have been discharged.

It's a curious one for me too as i have two credit cards that i declared to the OR that have a 10k limit on each (The balances were nil before the bankruptcy and they weren't a creditor). They are both still open accounts and i was wondering if i would be able to use them when discharged??

woodformoretrees

I'd hand it to the OR and then request a replacement after AD. I know you were meant to take all cards/chq books etc along to your OR meeting but have no idea if that includes store cards.

alastairq

The OR will not 'forbid' you to use it.

Use of any card is down to the issuer as to whether an account remains active after BR or not.

However, whilst Undischarged, the BR individual must inform any creditor of the BR if seeking to obtain credit in excess of £500.

Br itself does not prohibit access to credit..that is for the creditor to decide.

Why not go out and use it? See what happens?

woodformoretrees

The confusion being it had a >£500 limit set.

longtermplanner

alastairq wrote: »

However, whilst Undischarged, the BR individual must inform any creditor of the BR if seeking to obtain credit in excess of £500.

Br itself does not prohibit access to credit..that is for the creditor to decide.

Why not go out and use it? See what happens?

Personally I feel that it would be better to wait until after discharge. There is so little to gain by trying to squeeze in a few months credit repayments before the discharge date.

KISS