Apply For Cc W Credit Union Or Get Secured Card W/them?

InNeedofHelp

LoanSafe Member
Sep 8, 2012
95
4
8
Hello all! We've had a BK7 discharge since the end of 2012 and just a week ago had a foreclosure.

I've had a Capital One cc since June 2013. I have only been using my cc for one utility bill that has auto pay & use our debit card for everything else. I called our credit union and was considering applying to one of their low interest, no fee card (have a choice of a 7.85% card or 11.85% rewards card). However, as I explained why I wanted the card and how I plan to use it (mainly to re establish credit & put a utility bill or two on it and pay off immediately), she recommended a secure Visa card instead. It requires no credit check but apparently will still help improve my credit score. I figured maybe it's better to get this since I'm using my debit card all the time anyway.

What are your thoughts on my options? What do you recommend I do? Run my credit and get another unsecured card (and if you pick this option, do I get the low interest or the rewards card)? Or, just get the secured card w/o a credit check?

Will the foreclosure show under the BK and not affect us that badly? TIA!
 

Moe Bedard

Call 1-800-779-4547
Staff member
Loan Safe Mortgage
Aug 10, 2007
26,799
456
1,000
48
Southern California
www.loansafe.org
Hello,

I think it would be hard for you to get an unsecured card with all these recent bad credit events. Maybe that is why she had mentioned this type of credit card.

A secured card acts just like an unsecured, but you secure it by your own cash. For example, if it is a $500 card, you will have to put $500-600 in a savings account to secure the card which you will draw from and pay like a normal credit card. This will then help you reestablish credit and later you can apply for a secured card.
 

InNeedofHelp

LoanSafe Member
Sep 8, 2012
95
4
8
Hello,

I think it would be hard for you to get an unsecured card with all these recent bad credit events. Maybe that is why she had mentioned this type of credit card.

A secured card acts just like an unsecured, but you secure it by your own cash. For example, if it is a $500 card, you will have to put $500-600 in a savings account to secure the card which you will draw from and pay like a normal credit card. This will then help you reestablish credit and later you can apply for a secured card.
Thanks Moe!

Do you know - when does the foreclosure hit our credit report? My score was 689 prior to the foreclosure. Haven't gotten a notice that my score has changed. Should I apply for an unsecured now before the foreclosure hits my report? I've gotten a couple of other "pre-approved" (Merrick Bank & Barclay) as well. Should I do any of those or stick with the secured card since I prefer to use our own money and re-establish credit. Appreciate your feedback :)
 

Moe Bedard

Call 1-800-779-4547
Staff member
Loan Safe Mortgage
Aug 10, 2007
26,799
456
1,000
48
Southern California
www.loansafe.org
You're very welcome.

I would get an unsecured card if I were you and then just place money in a savings that is used strictly to pay the credit cards as needed. For example, say you use it during the month for groceries costing $300, just take your savings and pay it monthly or leave a small balance so you are not paying a lot of interest and still building credit with your own money.
 

InNeedofHelp

LoanSafe Member
Sep 8, 2012
95
4
8
You're very welcome.

I would get an unsecured card if I were you and then just place money in a savings that is used strictly to pay the credit cards as needed. For example, say you use it during the month for groceries costing $300, just take your savings and pay it monthly or leave a small balance so you are not paying a lot of interest and still building credit with your own money.
Thanks Moe! So should I go with the 7% card with no rewards (and I think 1% cash back) or 11% card with rewards?
 

Moe Bedard

Call 1-800-779-4547
Staff member
Loan Safe Mortgage
Aug 10, 2007
26,799
456
1,000
48
Southern California
www.loansafe.org
No problem... I would stay with the 7% if I were you to be safe.