In Ch 13 - Starting Rebuild - How many Secured cards?

[cf2701]

My attorny ok'd secured cards since i'm approaching my last year of payments in Ch 13 to start rebuild.

I got 1K secured NFCU a few days ago.  I also got a 1K through my local CU.  (I asked for a secured card with them, but I think they gave me an unsecured because they never held 1K from my savings account).  

My question, I'm debating apping for the Discover secured.  Their pre-qual page says I have a firm rate offer on both Disover IT and Discover Chrome.  Should I app for the secured anyway? Would it look bad to have a card that shows as secured on my profile?  (The two I have no report as unsecured).  Would a 3rd card help in the rebuild and is it recommended since I can let the inq age all at the same time?

Thanks a ton!  This place is amazing.

[Anonymous]

Yes, a third card will help in your rebuild, and Discover secured is a good card.

[jl4]

Definitely yes. 

Also, for what it's worth, Secured and Unsecured cards look identical on credit reports so only you and the bank know it's secured. Any future lenders won't be able to see that unless you actually tell them.

[Yeliaba1]

Sf

I’m also in my last year of Ch13.  In October my prequal on Discover had two offers.  I was declined for the 1st but was given a counter offer (non-secured) and was approved for $2200.  Two days prior I got a Navy secured for $500 and it unsecured today with a CLI to $2000.  My EX at the time of the Disco app was 635.  Hope this helps and good luck.

[cf2701]

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@Yeliaba1wrote:

Sf

I’m also in my last year of Ch13.  In October my prequal on Discover had two offers.  I was declined for the 1st but was given a counter offer (non-secured) and was approved for $2200.  Two days prior I got a Navy secured for $500 and it unsecured today with a CLI to $2000.  My EX at the time of the Disco app was 635.  Hope this helps and good luck.

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Thank you for the information and for sharing your experience.  Do you have any concerns with having a non-secured, even though you are near the end of your Ch 13?

I honestly don’t know how the trustee would find out and what it would hurt, IF you use it as a tool to improve scores and don’t carry a balance.  However, I am trying to do everything by the book, so not sure?

I mean, I have to think it happens a lot where secured cards graduate to non-secured on individuals who are still in Ch 13 plans.  It would be very weird to call them up and try to figure out a way for them to revert it back to a secured, in my opinion. I think if you are trying to improve yourself and are trying to comply in the spirit of what the BK was intended, is it really that big of a deal? (If you are racking up debt that is another thing entirely)

Anyone have any experience with this?

[Yeliaba1]

I understand your concern Sf.  I’m in Virginia so the rules are a little different. My attorney recommends no more than $5K in debt.  Still to optimize my scores I usually PIF and keep a small balance on one.  Like you I cannot see anyone arguing with a secured card that graduated in the last year and gives you a credit line higher than you started with.  I have read extensively and have not seen that documented on this site.  I’m sure a call to your attorney could resolve those concerns.