Secured card during Ch. 13?

[ltrain823]

Hello everyone, I hope all is well. I am close to filing Ch.13 and I am considering getting a secured CC. Can anyone who is well educated on how they report to the bureaus answer some simple questions for me please?

1. How often do secured CC report to the bureaus?

2. Do they look at how much you are using it or whether or not you pay them in full and on time every month?

3. If I had a $500 unsecured card and used $100 a month on it and paid it in full every month, would it report the same if I used all $500 and paid that in full every month?

I'm just trying to find the best ways to utilize this and what will work the best in my favor.I figure, why use my debt card for all exempt purchases (ie. food, gas, etc.) since it will do nothing to imporove my score. I worked with a financial advisor and we put my budget together and she said it makes sense to get an unsecured card for the same amout of your budget and then keep paying it off.

My only problem in the beggining will be putting the down payment on it of coarse. But after I get my tax returns (which my atty assures me I'll be able to keep...my fingers are crossed!!!) I should be able to do this.

Which brings me to my next question? When do you eventually get the down payment back from the secured card? Does good history after X amount of time work? I have yet to do any research on i so forgive me if these all sound like easy questions that I probably should know. I enjoy speaking to individuals on this forums so that was why i came here first.

Thanks!

[Peevee]

It won't do you a bit of good. When you file 13 it's no credit at all without your trustees approval.

[MajorMike]

Peevee, that isn't credit. It's money that is put on there as a SECURED account which is NOT credit. Also, every trustee is different. It says nothing over $500 without his approval. Some have limits and some don't. It all depends.

[MotherTrucker]

ltrain - it depends on the company. We ok'd secured cards with our attorney, then we each got one to start rebuilding our credit. My husband actually heard about it on Clark Howard - I think there is a website called cardweb.com that lists the different secured cards available, the annual fee, interest rate, etc. Ours report every month.
I'm not advocating incurring more debt. Like Major Mike says, its a secured account, so it's not credit. With ours, after 18 months you can get your secured payment back, and the card becomes unsecured, which our trustee won't allow. So, we plan on leaving ours secured throughout the BK.

[Elf]

Just use a debit card. If you have a $100 a month, then pull it from your own money on your debit card.

It looks like credit to anyone watching, but you're not violating your agreement with your BK. You're always using your own money.

Keep in mind: there is absolutely no reason for your trustee to believe for one little minute that your one little prepaid card won't get you into trouble.

You have a trustee because you get into trouble with credit.

Your ATM is good anywhere a credit card is good, and you're not borrowing: and you're not tempted to borrow what you can't really afford.

I'm post CH 13. I finished because I spent only what I have. Three years from discharge, I'm still debt free except for my mortgage and car payment. I can do that because I practiced while in my CH13. I used my debit card, and no one knew the difference, and no one knows now.

I have a credit card. I buy something and return home and pay it off, online. I'm strictly cash and carry.

I refuse to ever go through a BK again. It's a misery I will not repeat, but the cost is a disciplined life. But believe me, it's a much better life!

Don't use credit. They are out to own all of us. I'll never step into that trap again. Never.

Elf

[MajorMike]

Debit cards do not get reporting to the bureaus to build credit though!

Just use a debit card. If you have a $100 a month, then pull it from your own money on your debit card.

It looks like credit to anyone watching, but you're not violating your agreement with your BK. You're always using your own money.

Keep in mind: there is absolutely no reason for your trustee to believe for one little minute that your one little prepaid card won't get you into trouble.

You have a trustee because you get into trouble with credit.

Your ATM is good anywhere a credit card is good, and you're not borrowing: and you're not tempted to borrow what you can't really afford.

I'm post CH 13. I finished because I spent only what I have. Three years from discharge, I'm still debt free except for my mortgage and car payment. I can do that because I practiced while in my CH13. I used my debit card, and no one knew the difference, and no one knows now.

I have a credit card. I buy something and return home and pay it off, online. I'm strictly cash and carry.

I refuse to ever go through a BK again. It's a misery I will not repeat, but the cost is a disciplined life. But believe me, it's a much better life!

Don't use credit. They are out to own all of us. I'll never step into that trap again. Never.

Elf

[chpxiii]

Debit cards do not get reporting to the bureaus to build credit though!

Correct, Mike, however, in a chapter 13 you're not supposed to have a credit card. A secured credit card is a credit card even though it is secured.

You start rebuilding credit AFTER you're discharged. And I think it's for *either* bankruptcy. I don't understand how you can have any amount of credit if you're bankrupt?

[filingin08]

We're looking to rent a car when we visit family this summer - ours aren't reliable - places I've checked say we have to have a credit card. An ATM with the MC/Visa logo aren't accepted as credit. Might be one reason to have a secured card.

[chpxiii]

We're looking to rent a car when we visit family this summer - ours aren't reliable - places I've checked say we have to have a credit card. An ATM with the MC/Visa logo aren't accepted as credit. Might be one reason to have a secured card.

Disclaimer: This is for Dallas, TX only. It may be different in your state/county/where ever.

I was told that if we need a credit card - even for a car rental - we needed to get permission from the bankruptcy court. And even then, it is usually *only* granted to those who need it for business related purposes. i.e. your employer is requiring you to travel for your job and you need a car rental. But again, you still need the court's permission.

Trust me, I've been there being unable to rent a car. But then again, I was in bankruptcy and really wasn't able to vacation anyway.

[imbroke2]

We were told that by a car rental place once too that they don't accept debit cards. HOWEVER, our card has the mastercard logo on there. SO, I never tell people over the phone that it's a debit card. I tell them it's a mastercard, give them the number & exp date and it goes through. It's basically the same as a secured card only you don't have the added fees.

[treehugger1]

You can also open up a prepaid debit card account through netspend, western union, etc. I have a couple and there is no problem geting car reservations, plane reservations, etc. What you might need to be careful of is that you want to be able to use a signature as well as a PIN. Both cards say debit, but I can sign also. Unless someone looks closely, they would not even see the little "debit" written on the card. IT also has to work through the VISA or MC system. I also have a debit card through a bank that works just fine, although it is neither VISA nor MC. It is PIN only and I have no idea how it works. The card number is not the standard 16 digit numbering system. Its a mystery!

[treehugger1]

I just counted. The debit bank card has 17 digits. Very strange, but it works everywhere they accept debit. Its called a no-checking account. I think I even have documentation from the issuing bank stating the acount is not even a bank account. Wierd, because the "account" is FDIC insured. Who knows how it works. I'm just an unsophisticated consumer ;)

[ltrain823]

Just use a debit card. If you have a $100 a month, then pull it from your own money on your debit card.

It looks like credit to anyone watching, but you're not violating your agreement with your BK. You're always using your own money.

Keep in mind: there is absolutely no reason for your trustee to believe for one little minute that your one little prepaid card won't get you into trouble.

You have a trustee because you get into trouble with credit.

Your ATM is good anywhere a credit card is good, and you're not borrowing: and you're not tempted to borrow what you can't really afford.

I'm post CH 13. I finished because I spent only what I have. Three years from discharge, I'm still debt free except for my mortgage and car payment. I can do that because I practiced while in my CH13. I used my debit card, and no one knew the difference, and no one knows now.

I have a credit card. I buy something and return home and pay it off, online. I'm strictly cash and carry.

I refuse to ever go through a BK again. It's a misery I will not repeat, but the cost is a disciplined life. But believe me, it's a much better life!

Don't use credit. They are out to own all of us. I'll never step into that trap again. Never.

Elf

How does this do any justice to my credit? I am not trying to be rude but it doesn't make sense to use a debit card when it doesnt report to the bureaus. I have to travel for my job and they require me to use my own money and then have it reimbursed. I dont like to use my cash/debit card because they are not always the best on paying me back in a timely fashion. I figured having a secured card for this would work great. I was hoping to just have the questions that I asked above answered...thanks for the insight though.

[imaloser]

hi there - i am one year into a c13 - i sat down with my lawyer this morning with a list of questions, one of which was whether i was able to obtain a secured card and he said to go ahead with it - no damage done - mainly, when you're in a c13, unlike c7, as a rule, you cannot begin to rebuild your credit until post discharge, which is anywhere from 3 to 5 years of your filing date. i am trying to get my credit scores up because i intend to do a refi at 2 years. right now, one year into a c13, my credit score is 605 - kinda unbelievable - but that score also has to do with "seasoning" of my accounts - at the time of filing, i had not used a credit card in 3 years, so now 4 years, the only tradeline i have on my credit file is my mortgage which has been paid on time.

[imaloser]

oh - and another thing - this card is tied to my savings account which i contribute routinely, but little - less than 25 bucks per pay...but at least i'm building something.