Whats the best Secured MasterCard to apply for during a chapter 13 bankrupsty?

[flowerutah]

I was wondering whats the best Secured MasterCard to apply for during a bankrupsty 13, The one where we put in our own money to use with the card and pay back each month, We want to do this to get our credit score up to buy a house, We are short on 60 points from being 620...  Our loan officer said to get one of those Secured MasterCard where we put in our own money to start it up and pay it back, they said it will report to the credit burios every month and will make our credit score jump big time, I have talked to my attonrey about this and they said its fine to get sence its our money we are investing into this card and its not money we are borrowing... Any help would be great...

[Anonymous]

Hi flowerutah,

Have you checked the Credit Center tab up top of this page?  They have some great tools and suggestions.

You'll get great feedback from folks here as well.  I like Orchard for rebuilding, but I never had a secured card with them, so I'm not much help.

[scrubs]

what i understand ch 13 is that you can not get any new credit with the court permision if you get credit  without that permission your ch 13 could be dismiss

[flowerutah]

The one I would be getting is we put in our own $500.00 dollars and borrow agentist that each month, and pay it back each paycheck, My husband talked to our bankruptcy attorney and he said this is alright to do sense its not really a credit card Its our own money we are borrowing...

[Anonymous]

---

@flowerutah wrote:

The one I would be getting is we put in our own $500.00 dollars and borrow agentist that each month, and pay it back each paycheck, My husband talked to our bankruptcy attorney and he said this is alright to do sense its not really a credit card Its our own money we are borrowing...

---

Actually a secure card reports as a real credit card and you aren't really borrowing your own money in a sense. You are still borrowing money from the issuer. Your deposit is to back the cl if you default etc. This might not be ok as it is a credit card still.

[Anonymous]

---

@kilpela wrote:

---

@flowerutah wrote:

The one I would be getting is we put in our own $500.00 dollars and borrow agentist that each month, and pay it back each paycheck, My husband talked to our bankruptcy attorney and he said this is alright to do sense its not really a credit card Its our own money we are borrowing...

---

Actually a secure card reports as a real credit card and you aren't really borrowing your own money in a sense. You are still borrowing money from the issuer. Your deposit is to back the cl if you default etc. This might not be ok as it is a credit card still.

---

Along the same lines, when our car was totalled during a CH 13 BK, we had to get the trustee's approval to purchase a new (used) car with the insurance proceeds - no out of pocket cash was used.  It's always wise to be careful - those BK dismissals are crazy hard to deal with.

[kjm79]

I've never had a secured cc.  But my understanding of how they work is that you get a secured cc for $200 for example, you put $200 into an account with the lender.  You spend $50, and out of your pocket you pay that $50 back.  The ccc doesn't take the $50 from the account you set up to get the secured card for that $50 payment.  They hold that money the entire time (probably gaining some interest) until either the account is upgraded to an UNsecured account, you close the account, or you default on paying it back.  I may very well be wrong, as I stated, I've never had a secured cc.  If your attorney is giving you the go ahead and then you get into trouble for opening a new credit account (bk dismissed), you'll have a claim of legal mal practice against your attorney.  Good luck though, whichever route you go!