Search
   Home   Help Search Login Register  
Bankruptcy Canada online support group helps you connect with other people who have or are experiencing bankruptcy.
Total members: 11684 (2001 Posts in 553 Discussions)
Free Sign Up : anyone can join and post anonymously
Choose nickname:
Enter email address:
Choose password:
Re-enter password:
Type the 5 letters into the box below:
Type the letters shown in the box
 
I agree to the Terms & Conditions

 
Bankruptcy Canada Online Support Group

After Bankruptcy
Welcome to the After Bankruptcy category of the Support Group. What to do after bankruptcy? This is the place for discussions about After Bankruptcy.
Pages: [1]
« previous next »
Print
Discussion: RE - Whats the Best solution for applying for a Secured credit card  (Read 1247 times)
Discussion Average Rating: 0
0 People have voted to have this discussion removed
« on: June 11, 2011, 07:48:49 PM »
kyoku2011
Newbie

View Profile 		*
Posts: 6
Hello everyone,

I was discharged in April 2011 after 9 months in bankruptcy. I had an amazing trustee & his firm was extremely knowledgable as well provided everything i needed in regards to re-establishing my credit quickly & moving forth.

My question is simple, yet i've read way too many positives & negatives as to which direction i should take when applying for a credit card.
QST: (Should i apply for a " Secured credit card "- $500 security deposit on my end ). This card company claims they report monthly to the credit bureaus & keep them upto date.

QST: ( Obtaining a " Capital one " credit card ) Do they submit & keep track of your credit & score monthly.

QST: Will taking out a loan that i match against ( RRSP/MUTUAL FUND/RIF etc. ) from my bank & paying it off modestly over 9-12 months increase my chances for obtaining a secured credit card quicker.

Anyones help would be much appreciated. I need to be sure whats the most convenienat & quickest way to get back on track.

Thank you,

Kyoku
Logged
« Reply #1 on: June 12, 2011, 01:42:57 PM »
TreeFrog
Full Member

View Profile 		***
Posts: 197
Hi Kyoku,

Congratulations on completing your bankruptcy.

As far as getting a secured credit card, you don't need to get a loan first to increase your chances ... I'm sure they will approve your application right away.

I am midway through completing a consumer proposal. After being in the proposal for a few months, I applied for and received a Home Trust VISA card and a People's Trust MasterCard. Both of these cards report to the credit bureaus (as does Capital One I'm sure), and having them has increased my credit rating substantially.

I've been very pleased with them. Hope this helps,
~Wendy
Logged
« Reply #2 on: June 13, 2011, 09:31:40 AM »
alex
Newbie

View Profile 		*
Posts: 30
As Wendy says, you don't need good credit to get a secured credit card - it is for people with poor credit. I applied for and received a secured card while in bankruptcy. My trustee told me that I must tell the credit card company that I was an undischarged bankrupt, which I did and they seemed to care less.

This was a little under 3 years ago. It was a Capital One card, they report to the credit bureaus and this helps your credit rating. The main thing to remember is never to max out the card or miss a payment. I paid down the balance 2 to 3 times a month online. This way the % of credit used is lower, which helps your credit rating.

Taking out an RRSP loan is a very good idea. We also did this over the past 2 years and this has significantly helped our credit score.

Having done all this, discharged 2 years ago, we now have unsecured credit cards (cancelled our Capital One secured cards and getting our security funds back) and a credit score above 600. Be patient and use credit wisely to build your score. It can be done!
Logged
« Reply #3 on: June 14, 2011, 02:33:03 PM »
kyoku2011
Newbie

View Profile 		*
Posts: 6
Hello Wendy , Alex,

Thank you both for the quick replies back. Much appreciated. I figured as much especially with the research ive done the past 2 months after BK as well the advice from my trustee. Finally,
 I have decided to acquire 2 - secured credit cards ( Capital one & Peoples Trust ). I am setting up the certified personal chq's tonight ( 500$ each card ) & sending the application off asap. I realise theres a fee w/one & an initial yearly $100 annual fee , however its still worth it regardless.
Qst?. I assume both companies match the equivelant amount as to what you put down ( Ex: $500 up front on my end, they match the same ? ). This is what i understood for the most part.

On my part, im very excited & most certainly looking forward to increasing my credit score over the next 6,9,12 months down. Looking forward to gaining back what i originally lost.

Many thanks for your valued support & answers.

Have a great day.

Michael
Logged
« Reply #4 on: June 14, 2011, 06:54:59 PM »
alex
Newbie

View Profile 		*
Posts: 30
Getting 2 cards is OK, but you will pay 2 fees. We just got 1 card each, and our limit was 2,500 each. This helped our credit rating. I just hate paying fees to Credit card companies that are making a ton of money off of everyone. Why not get one card and just get a higher limit?
Logged
« Reply #5 on: June 19, 2011, 09:12:37 AM »
kyoku2011
Newbie

View Profile 		*
Posts: 6
Hello again Alex,

Yes your absolutaly right, it doesnt make sense for me to obtain 2 cards & pay those fees. Ive decided to go with "Peoples Trust " due to the fees being much lower than "Captial One". Im going to put in $1500 of my $$$,, i assume they will match that amount or come close.??.

Anyways , i want to thank you for your advice & great reply back on this topic. Im hoping by 2012 i can obtain an unsecured credit card & perhaps a loan.

Take care & thank you.

Michael
Logged
« Reply #6 on: June 19, 2011, 09:32:23 PM »
confuse
Jr. Member

View Profile 		**
Posts: 70
Hi
We went with Home Trust since they had the lowest yearly fee for two cards.

I don't believe that any companies match the amount.  If you put $1,000, that is what you get.

We are very happy with Home Trust,

Good luck
Logged
« Reply #7 on: June 25, 2011, 10:10:25 AM »
SAHMom
Newbie

View Profile 		*
Posts: 4
My husband and I both applied for secured cards immediately with Capital One.  My husband got a $300 limit with $300 down.  For some reason I got a $750 limit with only $75 down.  They were approved right away.  A year later he had a $1300 limit and I had a $1750 limit.  3 years later, my husband has a $3300 limit.  We've never had to put any extra down to get the limit increases.  They were offered to us on the anniversary of the account.  They do report to the credit bureaus every month.  We pay a $59 annual fee and nothing extra.  We each have a card on the other's account but there was no extra charge for that.  Home Trust was higher (just checked and it's $49 for one card, $19 extra for a co-applicant,)

From talking to other people who have been through bankruptcy, even though everything I've read says getting a loan for an RRSP or something is a good way to improve your credit rating, I haven't met anyone who was able to actually get such a loan soon after discharge.
« Last Edit: June 25, 2011, 10:17:36 AM by SAHMom » Logged
« Reply #8 on: July 05, 2011, 03:37:04 PM »
Lilly83
Jr. Member

View Profile 		**
Posts: 81
Quote from: SAHMom on June 25, 2011, 10:10:25 AM
From talking to other people who have been through bankruptcy, even though everything I've read says getting a loan for an RRSP or something is a good way to improve your credit rating, I haven't met anyone who was able to actually get such a loan soon after discharge.

I think the loans are secured by the RRSP? NOt sure how that works, i've heard of people getting a "loan" but the bank holds that money (instead of the person getting it) incase they default on payments? Maybe that is teh same thing? SO the money goes into RRSP but it's help by the bank?

Anyone know?
Logged
« Reply #9 on: July 05, 2011, 06:14:38 PM »
kyoku2011
Newbie

View Profile 		*
Posts: 6
 Cheesy Thanks for all the replies back, much apprciated. For the cards, wow! im slightly confused. I know Peoples Trust does not match , nor add any additional credit/matched. However, ive been informed that Capital One do infact match or add some credit to your account.
Also, the fees seem to be similiar. Im reading online that Capital One has an annual fee of 100$,, some are saying here on the site, its 49$?.
I havent purchsed a card as of to date, need to be 100% certain whats the best option. Either way, to build a credit score, there both equivelant.

Any feedback is appreciated.
Thank you everyone.

ML
Logged
« Reply #10 on: July 05, 2011, 06:49:37 PM »
SAHMom
Newbie

View Profile 		*
Posts: 4
These are the secured cards from Capital One:

If you go to capitalone. ca you can look up their cards and see their secured/guaranteed cards.

The annual fee ranges from $59 to $79 (the higher fees are for a low interest rate card if you carry a balance).

I have no personal experience with the Home Trust card but we've been very happy with Capital One.  
Logged
« Reply #11 on: July 07, 2011, 02:04:16 PM »
Lilly83
Jr. Member

View Profile 		**
Posts: 81
After readying this thread th eother day I aplpied for Capital One card, it was awesome to apply online and then they will send me a thing in the mail. Might be some confusion b/c I applied under my married name but my credit info is all under my maiden name.

we will see what happens in 7 - 10 business days LOL
Logged
« Reply #12 on: July 23, 2011, 01:57:48 PM »
MortgageEnder
Newbie

View Profile 		*
Posts: 29
Hello Kyoku

Congratulations and very well done !  Have you tried of getting an RRSP loan instead of a credit card ?  Just a thought. I am sure the income stream is steady and when you are ready for a mortgage - let me know and I will help you get one (if you are in ON).  Smiley

MortgageEnder
Logged
« Reply #13 on: November 13, 2011, 10:14:46 PM »
Gregory
Newbie

View Profile 		*
Posts: 1
Capital one was one of my creditor on my bankruptcy. I was discharge last Oct 30, 2011 Will i go back and try to apply a credit card with them?
Logged
« Reply #14 on: November 14, 2011, 04:26:02 PM »
Gue$t
Newbie

View Profile 		*
Posts: 3
Quote from: Gregory on November 13, 2011, 10:14:46 PM
Capital one was one of my creditor on my bankruptcy. I was discharge last Oct 30, 2011 Will i go back and try to apply a credit card with them?

Yes, they were included in my bankruptcy and I just got a cc with them.
Logged
Pages: [1]
Print
« previous next »
Jump to:  

SEO by Nautalex Powered by SMF 1.1.7 | SMF © 2006-2008, Simple Machines LLC
(c) Focus Website Marketing Inc.

About Us   |   Privacy   |   Legal Terms   |   Invitation   |   Links   |   Site Map   |   Login