Active Chapter 13 - Secured Credit Card?

[netweaver]

I did a search on this, but couldn't narrow it down to this specific topic without getting hundreds of unrelated hits.

I'm 1 year into a 5-year Chapter 13 plan. Are there any secured credit cards out there that I can be approved for? I've seen some people have suggested National City Bank in the past, but that is now PNC and I don't see a secured card option on their website. I've also heard that BOA is not BK-friendly (I bank with them).

I will be using this for car rentals, not to charge anything - just to get approved and then I will put the actual charge on my debit card. I don't really want to argue with anyone about whether or not I can rent a car with a debit card -- I travel EVERY week for business and I'm quite familiar with how it works. I've had my share of denials due to a credit check when trying to use a debit card. So please, I just want to know if there are any secured cards that someone with an active chapter 13 can be approved for???? Anyone with recent personal experience with this?

[Flamingo]

If you are in an active Chapter 13, and need this secured card to rent vehicles, do you have enough money available to open a secured card that will need at least several hundred dollars (for the vehicle charge itself and also the $400+ hold they usually put on a rental vehicle? If this is business related, you should check with your employer for a corporate card or a card guaranteed through the business to help you out. Some corporate cards are guaranteed by the business and not based on one's personal credit. Also, you need to be certain a "secured" credit card can be used by a car rental agency - they may not allow it especially if there is a limited amount on the card.

Many major car rental agencies now take debit cards with certain restrictions and advertise as such. Enterprise is one of them.

[netweaver]

If you are in an active Chapter 13, and need this secured card to rent vehicles, do you have enough money available to open a secured card that will need at least several hundred dollars (for the vehicle charge itself and also the $400+ hold they usually put on a rental vehicle? If this is business related, you should check with your employer for a corporate card or a card guaranteed through the business to help you out. Some corporate cards are guaranteed by the business and not based on one's personal credit. Also, you need to be certain a "secured" credit card can be used by a car rental agency - they may not allow it especially if there is a limited amount on the card.

Many major car rental agencies now take debit cards with certain restrictions and advertise as such. Enterprise is one of them.

Flamingo - I do appreciate your reply, but my question is what secured credit cards are available to me (specifically which ones will approve me), not whether or not I can rent a car with a debit card. Like I said in my post, I travel every week and know how it works. I have direct, personal experience with being denied due to credit checks, so that is not the question.

What I have discovered is that every rental agency location can apparently have a a different policy, no matter what they advertise. Yes, I have been able to rent with a debit card at some agency locations with no problems. I'm getting tired of "rolling the dice" and hoping that I'm not embarrassed in front of a co-worker when I get denied. So, my answer is to try and get a secured credit card.

And to answer your question - yes, I have the available money for a secured card.

So....again, does anyone have any recent experience with this?

[Flamingo]

Flamingo - I do appreciate your reply, but my question is what secured credit cards are available to me (specifically which ones will approve me), not whether or not I can rent a car with a debit card. Like I said in my post, I travel every week and know how it works. I have direct, personal experience with being denied due to credit checks, so that is not the question.

What I have discovered is that every rental agency location can apparently have a a different policy, no matter what they advertise. Yes, I have been able to rent with a debit card at some agency locations with no problems. I'm getting tired of "rolling the dice" and hoping that I'm not embarrassed in front of a co-worker when I get denied. So, my answer is to try and get a secured credit card.

And to answer your question - yes, I have the available money for a secured card.

So....again, does anyone have any recent experience with this?

Orchard Bank is BK friendly - but you will need to check, as I mentioned to you, if any rental car agency will accept secured "credit" cards. You may find they are treated just as debit cards and are not accepted or have restrictions. Best of luck to you.

[netweaver]

Orchard Bank is BK friendly - but you will need to check, as I mentioned to you, if any rental car agency will accept secured "credit" cards. You may find they are treated just as debit cards and are not accepted or have restrictions. Best of luck to you.

From what I have read, secured credit cards are treated exactly the same as unsecured credit cards. It's prepaid cards that won't work. However, I don't have any first-hand experience with secured credit cards.

Unfortunately, Orchard Bank is one of the creditors that is part of my BK, so I'm not sure that is an option.

[ChescoChris]

I have had the same problem with work travel~ public savings bank has a secured card that is accepted by all rental companies. There is no credit check but there is also no possibility of getting a credit limit that exceeds your deposit. It does solve the car rental issue and as a bonus it reports to the credit bureaus. Good luck!

[jetsfan2010]

it seems some of these companies market to recent BK filiers, as they know you cant get an unsecured card that quickly.

[discombob1]

Try Addison Avenue Federal Credit Union, I've heard great things about them.

[cereber0s]

Here is another vote for Public Savings Bank secured card. We did a small secured card for just that, car rentals only (although I have never had a problem with a debit card at Dollar car rental). They have got a web site where you can log in and check and pay your balance, which is another plus . However, from what I read, the card never unsecures.

[LadyInTheRed]

bankrate.com is one resource for searching for secured cards. At least a couple are listed there that say they don't do a credit check, but they may be cards already mentioned above.

[jcj112562]

Not to be a wet blanket, but *NO* credit cards, secured or otherwise, are available to you while in an active Chapter 13 without the approval of your Trustee. Just telling it like it is, if you wish to try your luck with avoiding the trustee finding out and dismissing you after you make all the payments without the discharge, be my guest.

John

[bpokey]

Hi John - It might be different in Georgia, but I was encouraged to get a secured card by my attorney for much the same reason that OP used. It's not credit, but rather just another way to access savings account you already have. That's like saying you can't use a different ATM while in bankruptcy because the other bank charges a fee. It's not the most efficient method to access your cash/savings, but it's not incurring additional debt.

My two cents and my experience. Now, having said that - I didn't need to pursue this route as I have a company card and the company is pretty lenient with what it's used for as long as you pay the balance every month.

[LadyInTheRed]

Hi John - It might be different in Georgia, but I was encouraged to get a secured card by my attorney for much the same reason that OP used. It's not credit, but rather just another way to access savings account you already have. That's like saying you can't use a different ATM while in bankruptcy because the other bank charges a fee. It's not the most efficient method to access your cash/savings, but it's not incurring additional debt.

Also, the OP says the card will only be used for the rental authorization and a debit card will be used to pay for the rental. So, even if it weren't a secured card, no new debt would be incurred.

[jcj112562]

Well, in the happy little book I was given by the trustee, it made a rather loud point that while in an active Ch13, *NO* credit could be established without the authorization of the trustee, and a secured credit card is just that, credit, much like a secured loan (i.e. auto). Might be different, but better that you *know* it is different, and proceed with knowledge, than to assume it is different, and wind up dismissed. Below is the applicable section of the Debtor's Handbook I received:

Creditors with claims arising after you filed your Chapter 13
case are called “post-petition creditors.” Post-petition creditors
are rare because you are not permitted to borrow money or use
credit cards while in Chapter 13. You may not borrow from a
finance company, bank, or credit union, or receive an advance of
your salary. You cannot buy anything over time, like a car or an
appliance. You cannot sign, co-sign, or guarantee an installment
note or use credit cards. If you need to borrow money for any
reason during your Chapter 13 case, you must first obtain written
approval from the Chapter 13 Trustee or the Court.

John

[BenzUp]

Netweaver : Try First Premiere Bank or Credit One. I was confirmed in December and both companies are marketing to me. FYI - I got a First Premiere card with $500 unsecured limit. They are both as expensive as an AMEX Gold card to carry (the interest is a different story but I pay my balance off in full every month - now). Also, my confirmation paperwork stipulates no more that $500 in credit is permitted without the trustee's approval **except as necessary for business**. Read yours as I suspect everybody's is different depending on their jurisdiction. I too travel and need car rentals for my work and this card works every time so long as I make interim payments to stay under my limit.