secured cards

[Hileman]

How exactly do these work to rebuild credit? Can you get one while in a chapter 13 (if allowed by the trustee)?

[Minnymouth]

Most Trustee's will not allow you to create new debt while in a Chapter 13 payment plan. Very unusual if they do, must be for unusual reasons (doc bills, auto, etc)

If you do obtain one to help build credit, pay it off each month then you are not creating debt, you have a revolving account.

[Hileman]

So if I am reading this right, if I get like a low balance one, and use it to pay my bills on, then make the payment when the bill comes out, I should be okay? Is it hard to find one after a bankruptcy? I am just trying to learn what I can about rebuilding so I can be ready to do so. Thanks for your help too.

[Bronte]

If it is allowed by the trustee I would get a secured card and use it to charge something that is essential such as gas then pay off in full each month. This way you are rebuilding your credit.

Secured cards should be easy to get because you are giving the bank money as collateral but many prime banks(Bank of America/US Bank) will not issue cards to people with bankruptcy.
National City Bank is the only prime bank I know that guarantees acceptance. The apr on this card is 14.99% and the minimum amount that you need to open an account is $250.00. The annual fee is $36.00 a year and they report to all 3 cb's.

Many here also have gotten a secured card thru Orchard. You may want to check out www.creditboards.com as they have many detailed threads regarding secured cards.

[StaciMM]

I'm not sure that National City will work with someone still in BK. Orchard might be a good try.

[poorme]

One good thing about National City is that they report your secured card as if it was UNsecured. Not all secured card providers do that. When other companies pull an INQ on you it appears to them that you have a regular, unsecured TL (which, if you're paying off ea month and have low utilization, is a bonus).