Rebuilding credit

[kareng68]

So I'm 3 years in now and starting to work on rebuilding my credit. I was approved for a department store card but I would like a Visa or Mastercard as well. Good idea or should I just stick with the department store card?

[justbroke]

Do you have Trustee approval or does your plan allow you to accrue debt without asking? You could get a secured card. I obtained a secured card and used it for business expenses.

[kareng68]

Anything less than $1000 is ok.

[justbroke]

You could try a pre-qualification from creditors such as Capital One. I would try one of those pre-qualification places (Capital One, Discover) or would try to get a secured card from Capital One, Discover or a credit union. Hopefully any type of secured card that you obtained would be the type that graduates.

[Carmella]

I am allowed to get up to $500 which has been a stumbling block for me since I don't know how to get a limit of only $500. I looked at few applications I received in the mail, but they do not have phone numbers to call.

Is a secured card considered to be accrued debt since you have to have give them the money up front?

[justbroke]

I am allowed to get up to $500 which has been a stumbling block for me since I don't know how to get a limit of only $500. I looked at few applications I received in the mail, but they do not have phone numbers to call.

If you apply and receive a limit higher than $500 and you're uncomfortable with that limit, you can always call the creditor and ask for a credit limit reduction. There are people that do this so that they are not tempted by the availability of large credit lines.

Is a secured card considered to be accrued debt since you have to have give them the money up front?

Usually not considered a debt since it's collateralized with a savings account or a certificate of deposit.

[Carmella]

Thanks justbroke The trustee has limited me and my husband at $500 each that is why I am worried about going over the limit. I had also wondered if the limit is over $500, but we do not use it would it go against the trustee. I haven't made an effort to get any credit, but have kept thinking about it because it would be nice to have it especially if we want go on a road trip and could charge a hotel room vs having to use the debit. Obviously not an expensive trip, but we went to a museum in neighboring state and it would be nice to spend the night instead of the extended day trip. I guess the best thing to do is verify with the attorney just to make sure I am doing it all correctly. In April I will be at the 2 yr mark and didn't want to rush getting credit too soon, but know the credit score will need improvement.

[sophieanne]

justbroke - If the trustee allows Carmella & Spouse - $500/each, could they get a joint card that may have a limit of $1000?? May be a silly question, but I'm curious.

[justbroke]

sophieanne great question (not silly), but I can't answer that. It is probably a good interpretation of $500 per debtor, but I don't want to speculate as to how that could apply to a credit card.