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Need a credit card for business travel

I am considering filing a consumer proposal, however my employment requires me to travel 3 out of 4 weeks and submit my expenses for reimbursement. They do not provide a credit card. I make 90K a year, owe 130K in credit card and LOC unsecured. Can I keep a credit card for business travel purposes if I file a consumer proposal? If not, what are my options?

Posted from: Quebec

One Response to “Need a credit card for business travel”

A licensed trustee said...

When you file a consumer proposal you are required to surrender all of your credit cards – even cards with no balance owing. You have the right to ask the credit card company to re-issue a card after you have filed, but you will need to disclose to them the proposal (which may make things more difficult).

The most common thing people do is apply for a secured credit card. With a secured card you place a certain amount of money on deposit and the credit card company issues you a normal credit card with the same limit as your deposit. As long as you pay off the balance every month the deposit just sits and earns interest. If you don’t make a payment they will use your deposit to pay off the card and then cancel it. Most banks do not advertise this service, but they offer it. Book an appointment with a loans officer at the bank you are going to use after you file and ask them how you go about obtaining one of these cards. You can apply for the secured card before you file for the proposal.