secured cc during 13?

[flower04]

I have a secured cc during our 13 due to a business that I have. Will my credit report be positively affected by this...thus increasing my credit score during the 13....or will it not make a difference.
Thanks

[berrymom31]

I really don't think it will make a difference on your credit score at this point. Just keep making the payment while making your 13 payment as well, and your score will steadily go up over the course of your plan. The only way that this secured card can effect your credit over your plan years is if you default, then it will be negative.

Good Luck!

[BigJohn]

What is a secured credit card? It is connected to something like an SBA loan backed by assets?

Can I ask who the credit card is with?

[rrockinggramma]

yes the secured card will help you improve your credit score while you are in a chapter 13. On time payments and never over the limit etc are the only way to go. I am allowed to take on up to 1000 debt without trustee approval. Anything over that, has to be approved.

I have a B of A secured card. 300.00 and it is great. In 9 months of good payment history they unsecure it.

It is far better than the sub prime cards like First Premier that charge you 200.00 of your 250.00 credit line just to have it, along with monthly fees etc.

[kmb]

Rrockinggramma, did you get your secured BOA after you entered Chp 13? I had heard BoA was not BK friendly (I didn't IIB them), so I haven't bothered to try. I did open a checking account with them shortly after filing, but haven't tried for the secured card. If you had luck, I may just give them a try.

TIA

[rrockinggramma]

yes but I filed in 2005. I would wait at least a year or so from your filing date to apply for the fully secured card, which mine is.

[kornellred]

Big John - you probably know by now - a secured credit card is obtained by placing a cash deposit in the bank equal to your credit line. You will pay a typically high APR with an incomprehensible method of calculating monthly interest. But, since you know that going in, you really don't care one way or the other.

I suppose that there are many valid reasons for having one while you are in a Chapter 13 - sometimes your business dealings actually require it. I wonder if a trustee would have a question such as "just where did you get the money to deposit on a secured cc?"