re: Applying for a Secured Credit Card - Should I do it?

[simon2020]

Hi All,

Does anyone know if I can apply for a "secured" credit card prior or even after I file for bk?

I found out B of America will give me a secured visa if I give them a minimum of $300.

Question: If I applied for a secured visa - does that mean the card is technically exempt from bk since the cash I put to secure the visa is technically mine?

Question 2: How does the BK court look at secured credit cards - good or bad?


The reason for my asking is we all know from time to time we have to use some type of credit card like making a reservation for a plane ticket, etc. (I also have my Wells Fargo debit visa but that's like writing a check.)

Comments/your own experiences are greatly appreciated.

Thanks!

[Tbornetun]

I wouldn't do it until after your BK is discharged. If you do it before, they may be able to keep the deposit or you will have to count the deposit as an asset.

[StartingOver08]

You have to list all debt in BK - secured and unsecured. Once you file you will lose the card and the balance to the trustee.

Wait until you are discharged as Tbornetun says. You will get plenty of offers to open a secured card after you are discharged.

[NowImDownInIt]

I agree with previous posters, but also want to say that you CAN buy plane tickets with a debit visa card. There are very few things that you can't do with a debit card if you have the available balance.

[magyar123]

Sure you can open a secured credit card just before filing - but just don't charge anything. Leave the cc balance at 0/zero.

[StartingOver08]

I had to list all my credit cards. The very first card that sent me a letter two days after filing was my ZERO balance Neiman Marcus credit card.

Don't open any new credit until after you are discharged.

[holding on]

This sounds like one of those answers that depends on your trustee. My trustee allows up to $4,999 of debt before having to get trustee approval. I also didn't have to list or even mention credit card that was at zero balance. So it varies I guess.