Should I get a Secured Credit Card before filing?

[jefferino]

I noticed that some of the banks, like Wells Fargo, offer a "secured" credit card but require that 12 months have passed since the discharge.

I will be filing CH7 soon but was wondering if I should go ahead and deposit about $300 now to open the secured card first? Will I even be allowed to keep it before the discharge?

[keystone58]

I asked my attorney the same question and she advised me to wait until the debt is discharged to try and get one to rebuild my credit. Not sure why, but she's been spot on with everything else, so I'll take her word for it.

[backtoschool]

Getting a credit card right before filing would be bad faith. You are insolvent 90 days before filing by definition. Getting a new credit card when you know you cannot pay your current creditors would be seen as bad faith. I don't think it would lead to dismissal, but it would cause the trustee to look at your finances more closely. Also the money backing the secured card would be an asset and would have to be exempted.

[tcreegan]

Hi jefferino,

No point in getting it before discharge, it will go the way of your ccs: closed by grantor

The ones where you deposit a sum and then use it like a debit card, the money remaining on the card is an asset for the BK estate....but I don't think anyone will go after it unless it is a good-sized chunk of change..

Its always best to do credit rebuilding after discharge. The best thing to do is pull your credit reports from the big 3 and start to clean them up.

Enjoy,

Tom in Colo