Why are secured cards never discussed as a means to rebuild credit?

[tobee43]

Of course. That's why BK is not as frowned upon how it once a few decades ago. I had lost my good paying "one earner household" job and was out of work for a year, and we had no choice but to file. Now, I'm making a whole lot less (over $25k less) and the my significant other is working now... but man, it's tough. But as the cliche goes, job is better than no job.

Even though BK is/was a pain, we must all realize we are given (for the most part) a fresh start to do our best to put ourselves in the best financial position as time goes on regardless of how we got to BK.

well...on a personal note...most NONE of our family knows...NOT even our son...since as you said some people frown on it...in our case they STILL do...so it's been extra hard for us.

we so badly needed this "fresh" start after losing our home of 33 years...i didn't even care about that...but losing one's health you can do nothing...(thankfully on the way back to good health) and a better life for us!

[CCsAreEvil]

One point on using a debit card for a hotel reservation. I had used my normal checking account/debit card to reserve and also charge on/against for a hotel. The only drawback was they put an additional $50 hold on my debit card (which they told me they were doing when I checked in). It wasn't a big deal to me. I still don't understand why they need to do that with debit cards and not on (official?) credit cards. I was fine with it. The hold gets released after they do the actual room charge after you leave the hotel.

So, no real need to use a credit card for a hotel reservation. But then again, maybe other hotel/chains have other restrictions/requirements.

[tobee43]

One point on using a debit card for a hotel reservation. I had used my normal checking account/debit card to reserve and also charge on/against for a hotel. The only drawback was they put an additional $50 hold on my debit card (which they told me they were doing when I checked in). It wasn't a big deal to me. I still don't understand why they need to do that with debit cards and not on (official?) credit cards. I was fine with it. The hold gets released after they do the actual room charge after you leave the hotel.

So, no real need to use a credit card for a hotel reservation. But then again, maybe other hotel/chains have other restrictions/requirements.

i know some people also have a problem renting cars with debit cards as well...they hold $.

[backtoschool]

One point on using a debit card for a hotel reservation. I had used my normal checking account/debit card to reserve and also charge on/against for a hotel. The only drawback was they put an additional $50 hold on my debit card (which they told me they were doing when I checked in). It wasn't a big deal to me. I still don't understand why they need to do that with debit cards and not on (official?) credit cards. I was fine with it. The hold gets released after they do the actual room charge after you leave the hotel.

So, no real need to use a credit card for a hotel reservation. But then again, maybe other hotel/chains have other restrictions/requirements.

It depends on where you are traveling and what your bank's policy is. I have had hotels hold the full amount of room plus tax plus several hundred dollars for "incidentals". Usually that is not a problem, since I already have the money in the bank, but I like to keep large holds off of my checking account. It is just cleaner and easier to manage that way.

[LSUTiger32]

Yes, this is true. But we can't save everyone. It would be nice in a perfect world, though. Even the people before me at my 341 were at the exact 8 year mark of filing BK for the 2nd time. My eyes popped open because it felt that they were almost taking advantage of the system. And I know people who do all kinds of deceiving tricks to obtain food stamps, welfare, etc (getting off topic... sorry).

Anyways, like any lesson in life, some people learn and some won't. That's just how it is. However, there are plenty of people who have learned their lessons from BK and can control having a credit card now.

I don't know if we are allowed to talk about financial people, but I was listening to some Dave R. audio CDs during a road trip. I don't know if I agree with everything he said, but one thing that made a lot of sense is that we should NEVER be borrowing money ever again.

I used to think credit cards were there for "emergencies". Even that is wrong. We should have our own emergency fund of a certain duration of time to cover emergencies that come up. If we don't have one yet, start by saving around $1k in an account and NEVER touch it... then continue building up that fund. Of course, if an emergency came up that was going to cost us $50k, that's another story... but those type of situations should have been covered by some form of insurance (another topic).

Back to the point, you can't save "everyone". Some adults will continue to behave like kids.. the more you tell them to do the right thing, they turn around and do the opposite.

I am a huge Dave Ramsey fan. A lot of people will tell you (well me) that it's a cult and he has people brainwashed. All he is does is make sense. He doesn't sell a magic formula, magic software or some get rich quick scheme. He is a great motivator, extremely fun to listen to and just makes sense. He helps you do the things you know you should already be doing but aren't.

I did a slight modification on my "baby steps" because I think $1,000 is too small an emergency fund to get started. I decided to do one month worth of expenses and then moved on to the debt that wasn't discharged (school loans and a personal loan to a family member.) We will be done by the end of the next year and then bumping the emergency fund up to 3 months of expenses. I also did not stop my retirement investing completely, I went down to the match.

[CCsAreEvil]

It depends on where you are traveling and what your bank's policy is. I have had hotels hold the full amount of room plus tax plus several hundred dollars for "incidentals".

Ok, now that's insane. Well, one thing we can do as consumers is avoid supporting those hotels (car rentals, etc). I can understand maybe up to $100 to hold but holding hundreds on a checking account seems excessive. So, maybe we should ask ahead of time what their policy is. If their holds are too outrageous, select a different hotel/chain.

[tobee43]

It depends on where you are traveling and what your bank's policy is. I have had hotels hold the full amount of room plus tax plus several hundred dollars for "incidentals". Usually that is not a problem, since I already have the money in the bank, but I like to keep large holds off of my checking account. It is just cleaner and easier to manage that way.

i think that's one of the reasons rebuilding credit is so important when we are rebuilding our lives...one never knows when we need to travel...whatever the reason whether business or personal. i, for one also don't like big holds on our account either...actually there's nothing BIG to hold!! LOL!

[LSUTiger32]

Believe it or not, some people weren't in this mess because of their inability to keep from charging things. My bankruptcy was caused by being laid off living overseas and not eligable for unemployment in the US and not having any income whatsoever for 8 months. Did I have savings to live on and pay my bills? Yes I did...but guess what, they ran out after like month 5. And when I was not even late on any of my credit cards, I called Chase to ask them if I could have a little leeway on my payments because of my situation and guess what they told me? FU & just cause you called us, we're gonna jack your interest rate up from 8% to 30%. I wasn't behind or anything...but just cause I asked them for help they decided it was better to jack my interest rate than assist. I also had a terribly upside down mortgage and bankruptcy just happened to be the best solution for me.

I also do not fault anyone for wanting to live a cash only life... if that works better for you or anyone, I'm all for it. But I'm not gonna tell people its stupid or make snide comments about it.

Yet you went back. This is the point, you don't need them and they treated nearly all of us like crap but yet you went back. I am not mad at you because you did, just find it hard to believe. Also, please don't go there again......I never told people they were stupid, ever.

[LSUTiger32]

Yes you can just use cash, blah blah blah. Why not have your cash help you though by having a secured card and/or investing it and using an unsecured card and paying off in full every month.

I do agree that no one should get into unsecured credit card debt. I will never carry a balance. Period.

And of course there will always be people who have to make the same mistake multiple times before they learn their lesson. But even your own statistics you gave in another thread pointed out that those people are in the minority. (I believe you said the number was 15%).

I am actually thinking about that secured card since you told me the unsecured cards and car loan guys would hate me! Yeah 15% that file BK again, probably 85% default on something again but that is just speculation on my part.

[backtoschool]

I am actually thinking about that secured card since you told me the unsecured cards and car loan guys would hate me! Yeah 15% that file BK again, probably 85% default on something again but that is just speculation on my part.

I think you should get a secured card with a ten dollar limit just to cause the bank huge fees in processing your paperwork, and make your point that credit cards are silly.

[platter]

I recall a Salvation Army Store in MD that the debit part (PIN #) of the card wouldn't work but if they ran it as a credit, it would. I've run into this several times and it's the way the store's system is set up because when I called my bank, they said there was no problem on my end. One clerk had a little knowledge about it and said it had something to do with Credit Unions that the cards wouldn't work.

I'm not sure, but I think I ran into situations where the Credit Union debit/credit card wouldn't work at all. Can't really remember if it happened like that.

And have seen many times that I was cut off at the pump with a $75 limit on fuel. I do think it was when I was using a debit/credit card but it might've been a credit card from another company. They just had their pumps set this way.

[Amy26]

Yet you went back. This is the point, you don't need them and they treated nearly all of us like crap but yet you went back. I am not mad at you because you did, just find it hard to believe. Also, please don't go there again......I never told people they were stupid, ever.

Went back ...to credit? How can you find it hard to believe... did you read anything I said? I think I have pretty clearly proven that I do NEED credit. And I'm pretty sure I can find some derrogatory posts where if you didn't actually say "hey that's stupid" it was pretty darned close...

EDIT: And technically, in post #27 you did infact say that something B2S said was "stupid" and you were "calling it like you see it".

[tobee43]

I recall a Salvation Army Store in MD that the debit part (PIN #) of the card wouldn't work but if they ran it as a credit, it would. I've run into this several times and it's the way the store's system is set up because when I called my bank, they said there was no problem on my end. One clerk had a little knowledge about it and said it had something to do with Credit Unions that the cards wouldn't work.

I'm not sure, but I think I ran into situations where the Credit Union debit/credit card wouldn't work at all. Can't really remember if it happened like that.

And have seen many times that I was cut off at the pump with a $75 limit on fuel. I do think it was when I was using a debit/credit card but it might've been a credit card from another company. They just had their pumps set this way.

i have had the same situation happen. we had to go in and speak with the bank manager to make certain our debit card limits were NOT questioned...or we would close our account..he actually cared. we since have had no problem with it at all....other then for the company we are trying to use it with...like when renting a car and them waning to hold a high amount..etc.

[tobee43]

Went back ...to credit? How can you find it hard to believe... did you read anything I said? I think I have pretty clearly proven that I do NEED credit. And I'm pretty sure I can find some derrogatory posts where if you didn't actually say "hey that's stupid" it was pretty darned close...

but NOT close enough...between you and b2s....he'll change his tune sooner or later...it's why he's hangin on....he's JUST about convinced...

[NowImDownInIt]

but NOT close enough...between you and b2s....he'll change his tune sooner or later...it's why he's hangin on....he's JUST about convinced...

LOL. I don't quite think so myself. Why are we all so worried about converting anyone anyway? This is money. Personal fiscal responsibility. Key word being personal. I for one, will never have an unsecured CC or car note again. I see a lot of common sense and practicality in an all cash lifestyle. While this is practical for some it is by no means practical for all. These are personal choices and why should it matter to any of us unless we see our forum friends actually falling back into the credit trap. This is all about rehabilitation, not lifetime abstinence. Unless I see someone go out and get $5k credit directly post discharge and go on a completely irresponsible spending spree I feel like I have no duty (or right) to judge/convert them.

That being said, there are many posts/posters that I read and think to myself, "What an idiot." Then I move on.

P.S. - I love Dave Ramsey's common sense money approach myself. Since I don't own a home my "baby steps" are a little modified to fit my life and financial situation.