What's the best secured credit card?

[huskydawgs]

I'm currently 18 months into my 5 year payback of my Chapter 13.

I talked to my trustee and they said if I qualified, I could get a secured credit card to start boosting my credit score while in Chapter 13.

What's the best secured credit card I should apply for?

[huskydawgs]

What do you think about the CitiBank's Secured MasterCard

[Nicollette]

Ive read other posts on here that the Orchard Bank secured cc is a good one to start with.

[huskydawgs]

I ended going with an Orchard Bank Credit Card. Do you think it's enough to rebuild my credit or should I get another one to like a CitiBank Secure Mastercard in addition to my Orchard Bank Credit Card?

[Flamingo]

I ended going with an Orchard Bank Credit Card. Do you think it's enough to rebuild my credit or should I get another one to like a CitiBank Secure Mastercard in addition to my Orchard Bank Credit Card?

You are in Chapter 13. You could have 10 secured credit cards and it would not do anything extra due to the BK on your credit reports and that you are a serious credit risk due to your BK filling. What will help you the most is being prudent with the one card you have, make all your Plan payments on time and do not be late with a single payment of any kind during your Chapter 13. After discharge, clean up your credit reports, go slowly applying for credit as each credit application is a hard inquiry on your credit reports and stays on for two years. Too many hard inquiries at one time either during a Chapter 13 or shortly after discharge can make creditors run. Also, there are creditors who will not extend credit of any kind to anyone who has a BK on their credit reports. Time is your friend during Chapter 13 and after discharge. Also note that credit scores mean nothing to some creditors if there is a BK showing on your credit reports.

It has been 10 years since we filed our Chapter 13...it takes a while to get fully back on your feet after filing and the BK does take its toll on your credit for several years as we have found out no matter what you make or how well you are doing afterwards. Take your time and be prudent.

[nsupanda]

Please read the bottom part of this article: http://www.scsuntimes.com/newsnow/x4...ter-bankruptcy

[huskydawgs]

well, I feel I should switch cards. I opened an Orchard Credit Card, but the annual fee is $60. I thought I could waive the fee after a year, but I can't. Should I just keep this card open or switch to another card. Does that destroy a year of my credit history?

[huskydawgs]

thoughts?

[nsupanda]

I agree with Dave Ramsey... I'm sorry, but getting right back into the credit card trap right out of BK or even during it looks bad to me. If I were your potential mortgage lender I would deny you on the spot. But what do I know?

[Clabbergirl]

I've had well-meaning friends make similar suggestions on secured cards when they find out I'm waiting on my Chapter 7 discharge. 'Well you can still get a credit card, just get a secured one.' I'm like nsupanda - I don't want any credit cards. Filing 7 is like throwing a match on the whole thing - no more loans, no more monthly interest, none of that crap. I don't even want a contract for satellite tv! Why do you want to put money in the bank on a credit card when you've already got the money in the bank? Cut out the middle man. Debit cards do anything credit cards to with the exception of renting a car - and there are some companies that don't need a credit card (i.e., Enterprise). Who cares about the FICO score? It's useless if I'm not going to get myself back where I am now.

[addisonsmom]

I have seen this same post over and over again. Most people are having to file BK due to CC debt. I just don't understand why anyone would get another one. I will never, ever own another credit card. If I can't buy it with cash, I don't need it. BK is a means to help you live within your means. If you are using CC, more than likely, you are not living within your means. I am not talking about the rare exception of those that pay them off every month. That is rare. Best of luck.

[huskydawgs]

Well, I'm using the credit card to just pay my cell phone bill ($65/month). I don't carry the card with me and I pay it off every month. I'm just concerned with the $60 annual fee, but I guess that's what you have to pay for a credit card.

Or should I switch to a lower fee credit card?

[malf1204]

I hate to play devils advocate but it was not credit cards that got me in trouble it was MY use of credit cards. I think that getting a card and using it wisely is a responsible thing to do.

[LadyInTheRed]

I hate to play devils advocate but it was not credit cards that got me in trouble it was MY use of credit cards. I think that getting a card and using it wisely is a responsible thing to do.

I agree with you. I will never use credit cards like I did before, but I will have a credit card again because I think there are legitimate reasons to have one. It's a choice we must each make for our self.

huskydawgs, try going to bankrate.com to compare different secured cards. I don't see any with no annual fee, but you may find one with a lower fee.

[Clabbergirl]

huskydawgs, do you have a debit card you can pay your phone with directly? Or why not pay your cell phone bill straight from your bank's online bill pay system? If a phone bill is the only reason you want a credit card, is it possible you're adding an unnecessary step to the process of paying it?

Split that annual fee over the course of a year and you're adding another $5 to your phone bill every month just to pay them with your own money on a secured card. Drop the card and put a gallon of gas in your car.