Credit Card Application After Consumer Proposal

June 30th, 2012 by Questions

I had to file a consumer proposal earlier this year, and want to start rebuilding my credit as soon as possible. Can you help me with the best way to go about getting a credit card so that I can start to rebuild? Thanks!!

Posted from: Saskatchewan

Questions

One Response to “Credit Card Application After Consumer Proposal”



June 30, 2012 at 10:07 am, A licensed trustee said:

If at least 3 months have passed since you filed your proposal, you may apply for a secured credit card. There are a couple of ways to do this.

Most CDN banks offer the service, but don’t advertise it – you need to speak with a loans officer at whichever bank you deal with. They’ll get you to place $500 or a $1,000 in a savings account which they will then freeze. They will then issue you a credit card with the same limit. As long as you make your payments on the card your deposit just sits there. If you miss a payment the bank will apply your deposit and then cancel the card.

The second way is to apply to a US based credit card company. They charge a one-time insurance fee, for example to get a $300 limit card you might pay a one-time up front fee of $200. The higher the limit you request the higher the fee payment.

Finally, stay away from the prepaid cards – these do not rebuild your credit at all, they simply look like a credit card.

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