Is it ok to get a secured credit card pre-BK?

[signal]

I have been living without CC's since 2009 and have not paid on my non-secured credit since then. I am in BK planning mode I would call it, as I may not need to file unless there is some compelling event (judgments, etc), until then, I am riding things out.

However, I travel frequently for business, and there are many cases where not having a CC has put me into a bind. Is it OK to get a secured CC, so I can use this for business expenses (which I get reimbursed on).

My concern is that 1) it should actually help improve my credit score, but 2) a new tradeline showing up may upset some of my creditors, but I am just guessing, I don't know, which is why I am seeking some advise.

Also if I were to end up filing for BK, does the trustee care if I have a secured card I am using? I would think not, since its after all secured and its my money not borrowing someone else's.

[angles]

It’s probably a good idea to have one of those cards. As far as I know the pre-paid cards are not reported to the credit agencies so it won’t show up. The thing to consider is the money on the card is considered an asset, so on the day of filing make sure its listed and exempt or no money it.

We exclusively use the prepaid cards now. We have a prepaid card from Perk Street that pays us a percentage when we use the credit side of it (not the debit side). We also have a couple of regular CCs we picked up after the BK to help rebuild the credit but find ourselves not really using them.

[JessMN]

I think the OP was asking about a secured credit card, not a prepaid debit card - there is a big difference. I wouldn't get a credit card before filing bk - even a secured card - because its still a credit card and you would be required to list it on your petition and they would most likely close the account after filing (even if you neglected to list it - though you ARE legally required to)

[catleg]

I think the problem you'll have is it'll report as "included in BK" thus negating what you're hoping to accomplish in fixing your credit.
Wait until after you file to attempt this, or even after you are discharged to play it safe.

* Same thing Jess just said!

[dman]

Wouldn't the amount that's secured be an asset?

[AngelinaCatHub]

Wouldn't the amount that's secured be an asset?

Yes it would. Hypothetical: If you had cash to hide, and purchased a series of these cards, the cash would disappear. However, Trustees know this too. The paper trail will hang you. (IN NO WAY am I suggesting the OP is thinking of this.)

But the value on the card is an asset. 'Hub

[kornellred]

The answer to the OP's question is: NO