April 25th, 2011 by Questions
During the time of bankruptcy, is a person allowed to have a secured credit card? Not prepaid, but secured.
Posted from: Ontario
April 25, 2011 at 6:32 am, A licensed trustee said:
Certainly – the trick is coming up with the “deposit” to be held by the bank that issues the card. Most CDN banks don’t advertise secured cards, but they will issue them. The process involves putting $1,000 on deposit in a savings account or GIC that the bank places a “hold” against – then they issue you a credit card with a $1,000 limit. As long as you make your credit card payments the deposit will eanr interest – if you miss a payment the bank will use your deposit to pay-off the card and then cancel it.
Secured cards a good tool for rebuilding your credit after you have been discharged from bankruptcy.
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