i just filed for chapter 7 bankruptcy and was wondering if anyone on here had any advice/experience with secured credit cards? i want to start rebuilding my credit as soon as possible.
which ones are good? i know a lot of them have annual fees etc.... and i want to try to get the most out of it without paying people for it!
Wed Jan 12, 2011 6:11 am
KatherineLee88 Preferred Member
Cash: $ 22.65
Joined: 10 Jan 2011
Although I don't know for sure, I would assume most or all secured cards costs some sort of fee. They sort of act like debit cards in that you have to deposit money into the account and then you can use them. In order for the company to make some sort of money on them for the service it would make sense to charge a fee.
Anyways, I recently got a second credit card from Chase then I realized that personal financial advisors like Suze Orman would recommend getting a card from a Credit Union. There is a web site, which I have absolutely NO affiliation with that tries to explain the benefits of a credit card from a credit union. I would say if you could find a credit union in your area that is good and offers a secured card, go through them.
If I ever want to tack on another credit card, I would get a card from a credit union just because they are federally regulated to not offer cards above 18%. Good to know now that I have my new Chase card that has a higher rate than the card I got 2 years ago when I had NO credit history! I guess since I never carry a balance it doesn't matter WHAT they put it at.
In your situation, just research online for some secured cards. You may just have to pay a fee for awhile to help build up some credit. It would not be forever, and then you can later apply for a unsecured card that gives you some rewards.
Wed Jan 12, 2011 1:06 pm
Cash: $ 2.00
Joined: 25 Jan 2011
Location: Atlanta, GA
It may sound ironic but a quick way to bounce back from bankruptcy and re-establish your credit rating is to apply for a secured credit card. As you make regular payments your credit history will improve. Make sure you can fully commit to meeting the payments on time you'll just be making your bad credit situation even worse.
Sat Feb 19, 2011 6:36 am
dthomas Contributing Member
Cash: $ 5.85
Joined: 20 Jan 2011
When you're looking for a secured credit card, make sure you find one that has limited fees and reports every monthly payment to the credit bureaus. Sometimes people get confused between secured credit cards and prepaid debit cards - debit cards don't typically get reported to the bureaus. So make sure you go over the fine print before you do anything else.
Mon Feb 21, 2011 8:18 pm
MrPolarZero Preferred Member
Cash: $ 31.00
Joined: 31 Jan 2011
Location: Aliso Viejo, California
I am really not that familiar with how the secured credit card works. But as far as I know, most secured cards do have limitations on funds use.
Well, I'm not sure if you were already able to find a secured card for yourself. While secured charge cards can be costly, there are situations where they can be quite helpful. Repairing your credit is the main reason. Here are a few of the secured charge cards for just that scenario. How many times have you expected additional information on ways to get a cheap payday loan and resorted to a web site search on payday loans?" No need to worry. All the information and facts you'll need is at Match Financial.
Wed Nov 05, 2014 6:40 am
Cash: $ 380.25
Joined: 09 Feb 2009
Why do you need credit right now, you just filed bankruptcy. Seems like you might want to figure out what led to having to file for bankruptcy and how to prevent another problem in the future. Bankruptcy doesn't fix the symptom. Most people who file are right there again in the future, they haven't figured out how to budget money.
Risk comes from not knowing what you're doing. (Warren Buffet)
One thing I have seen is that bankruptcy is a green light for credit card companies to solicite you, and for good reason, you can't file bankruptcy again for ten years, so they can go after you if you default, so technically this is less risk, so companies like Capital One will send you dozens of offers as soon as they get your name from public records. Credit lines are low to start, but well worth it if you are looking to rebuild your credit.
Another tip is to apply for Fingerhut credit, they report, and as long as you repay on time, this can get you the better deals in a short time. The sooner you get restarted with credit the better. Secured cards are an option, but they do not cary as much weight as a non-secured credit card, even if it only gives you a $500. line, most will step you up in credit lines in as little as six months of paying on time every time.
Success to all,
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