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New Member
Posts: 4
Registered: ‎08-17-2010
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Applying for Secured Credit before BK Discharge?

I've been searching and reading this forum looking for an answer or anyone else in this situation, but have found nothing, so I'm starting this thread. If there's information in another thread, I've missed it, but will gladly read what (if anything) has already been discussed on this topic if someone would point me in that direction.

 

We haven't received our discharge (met with the trustee almost a month ago) and really don't want more credit cards any time soon, but due to the nature of my husband's occupation, it's necessary for him to rent cars in his travels. He's self-employed, so there's no corporate card or any other entity that would be responsible for his rental cars, which makes it necessary for him to have a credit card (just was turned away at the rental counter today).

 

Has anyone here applied for (and gotten) a secured card before their BK was discharged? To me it seems like it wouldn't be an issue if we were putting the money up, but the more I read, the more I am unsure). In my perusing tonight, the three that I'm most interested in or considering most are PNC (although I forgot to check to see if their card is interest-bearing and if they report to the credit reporting agencies, but plan to call my local branch tomorrow), Orchard, and Public Savings Bank. While I'm not excited about the one-time fee with PSB, based on what I've read here, that may be the most likely option. We have a checking account with PNC, so I thought they might be worthwhile if they report to the credit bureaus.

 

Does anyone else have any experience with this? Am I thinking too much?

 

Thanks in advance.

Moderator Emeritus
Posts: 4,470
Registered: ‎12-31-2008
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Re: Applying for Secured Credit before BK Discharge?

 Hi blue-green and welcome!

 

No such thing as thinking too much - well, at least not in your post. 

 

I'm not sure what flavor of BK you filed.  I filed CH 13, and so am familiar with that flavor.  In CH 13's, you are not allowed to apply for additional credit while in the BK - even after you've completed payments and are waiting for the official discharge.  To do so can cause CH 13 BK's to be dismissed even if fully paid.  That being said, folks sometimes do so and get away with it.

 

Other BK's may have different guidelines.

 

I had good luck with Orchard after BK, although the CL's may not be high enough for your needs.

My understanding is that PNC is not necessarily BK friendly - but I may be mistaken.  We have our mortgage with them, and I'm holding off on app'ing for their card until our BK ages off our reports.  Someone with more PNC experience might have helpful info.

 

Good luck moving forward - I wish you the best!

Just puttin' syrup on something, don't make it pancakes.
New Member
Posts: 4
Registered: ‎08-17-2010
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Re: Applying for Secured Credit before BK Discharge?

[ Edited ]

Thanks for the reply, beamMEup.

 

We filed Ch. 7, so we're in a different boat.

 

I called a local PNC branch and asked a lot of questions about their secured card specifically, but didn't mention the BK, so I'm not entirely sure about how it would be handled. He did say that they check enough to verify that I am who I say I am, but don't do a credit check, per se. He also said it would take 3-4 weeks to have the card in my husband's possession, so that said, we will probably go with Public Savings Bank and pay the extra money to get it faster, since he has to rent cars before then. Our mistake was that he used our debit to reserve the car online weeks ago, but didn't realize this was an issue until he went to pick up the car yesterday. I was under the impression he'd used a debit card to rent a car in the past, not realizing he'd paid with the debit, but gave the old credit card when picking up the car (in the past).

 

If anyone else has had any experience with this situation, I'd love to hear others' input.

Regular Contributor
Posts: 238
Registered: ‎09-09-2009
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Re: Applying for Secured Credit before BK Discharge?

getting any type of cc before  the bk is duscharged is a big no no. if the court finds out the judge could and most time will dismiss your bk. talk with your lawyer he/she will tell ypu the same.

Contributor
Posts: 92
Registered: ‎06-02-2008
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Re: Applying for Secured Credit before BK Discharge?

I would not try and get the CC while your BK proceedings are going on. I would wait until you get the discharge letter in your hand.

New Member
Posts: 4
Registered: ‎08-17-2010
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Re: Applying for Secured Credit before BK Discharge?

I checked with our attorney before I came to this forum. He advised that we don't have to wait until the discharge to apply for a secured credit card. My husband  ended up applying for the Public Savings Bank card. Were it not for the rental car situation and the necessity for renting a car for some business travel, he wouldn't even consider it until the discharge was received, or if our attorney advised against it.

 

Thanks for the help and suggestions.

Contributor
Posts: 90
Registered: ‎11-12-2010
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Re: Applying for Secured Credit before BK Discharge?

most Hertz locations let you rent with a debit. Some other car companies do also. You have to check the branch in advance to see if will take debit.

Moderator Emerita
Community Leader
Epic Contributor
Posts: 28,098
Registered: ‎04-01-2007
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Re: Applying for Secured Credit before BK Discharge?

 


carolina98 wrote:

most Hertz locations let you rent with a debit. Some other car companies do also. You have to check the branch in advance to see if will take debit.


But realize that they might put a humongous hold on your checking account!

 

* Credit is a wonderful servant, but a terrible master. * Who's the boss --you or your credit?
FICO's: EQ 781 - TU 793 - EX 779 (from PSECU) - Done credit hunting; having fun with credit gardening. - EQ 590 on 5/14/2007
Moderator
Posts: 17,005
Registered: ‎07-14-2009
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Re: Applying for Secured Credit before BK Discharge?

Most will place a “hold” on your debit card in the amount of the full rental price plus, in some cases, a pretty healthy deposit percentage.

 

Yes I know this is basically what HTSU said.  :smileyhappy:

 

 

 

From a BK years ago to:
EX - 9/09 pulled by lender 802, EQ - 10/10-813, TU - 10/10-774

"Some people spend an entire lifetime wondering if they've made a difference. The Marines don't have that problem".

Moderator Emeritus
Posts: 4,470
Registered: ‎12-31-2008
0

Re: Applying for Secured Credit before BK Discharge?

and just a quick note that OP posted 3 months ago (and hasn't been back in so long)

they've probably been discharged by now

 

good to note the rental car policies - we've had a few posters get very frustrated with this issue

Just puttin' syrup on something, don't make it pancakes.
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