What is the best credit card to obtain after a CH 13 bankruptcy?
Jun 30, 2009 in
Credit
Deeva
Now I just filed July 2007 but I know that I need to rebuild some credit. All of my plan payments have been coming out faithfully and on time. My attorney says I can go ahead and get a credit card but I need to keep the balance low or paid off monthly. Please help and thanks!
Now I just filed July 2007 but I know that I need to rebuild some credit. All of my plan payments have been coming out faithfully and on time. My attorney says I can go ahead and get a credit card but I need to keep the balance low or paid off monthly. Please help and thanks!
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3 comments
Julian G on June 30, 2009 at 9:24 pm
you find the information you need to make sound life decisions – for you, your family, and your home and business.
Smoovy Loco on June 30, 2009 at 9:47 pm
Right now, the best card for you situation would be a secured credit card. These are the easiest to get because a deposit which is used as collateral is placed upfront which can establish a credit line. For example, $300 gets you a $300 limit. The deposit is sometimes linked to a savings account or CD that gains interest while you’re building credit, so the deposit isn’t just sitting there. Also, you can treat this deposit as a startup for an emergency fund which you can use later. This credit card is going to be the new backbone of your credit history, so it’s important that the limit be raised as often as possible. The higher the limit and the lower your balance, the better it looks on your score because there’s a cushion between the credit you’re using and your available credit. The best way to use the card would be to make a small purchase ($20/month max) pay it off on time, and increase the credit limit every month. This way, you’re still building credit by showing payment activity, but you’re not going into debt. Usually after a year, the card upgrades to a regular card, and the deposit is given back. Keep in mind that you can use this as an emergency fund that will help ease the heavy use of credit cards.
I posted several links to some secured credit cards out there.
Hopefully this helps,
good luck!
Kaska on July 1, 2009 at 2:35 pm
You can get a secured card.
It will take about 2 – 4 years before you can get an unsecured card.
Best to wait to keep those inquiries off your credit report.