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Subject:  Re: After bankruptcy: secured CC Date:  4/3/2013  2:35 PM
Author:  aj485 Number:  306896 of 312188

he said that to rebuild credit faster, I should cautiously apply for a new credit card (secured or otherwise) and use it every month, spending $100 (or barely above it) and paying it down, on time, every month. As this board understands, he strongly cautioned against keeping a balance on the account. He said at least six months from there, I should be able to apply for another account, but again must maintain the same habits. He said that two years after beginning rebuilding (and maintaining proper spending and payment habits), I should have a good credit score again.

I would agree in principle with your lawyer's advice. However, I would strongly suggest that the amount of credit that you use on the card on a monthly basis be:

- 10% or less of the amount of the credit line on the card (so if you get a $300 credit line, the max you would charge each month would be $30)
- only the amount that you already have available (in cash, a checking or savings account that you WILL NOT be needing for anything else) at the time that you make the purchase - no saying "I'll pay for it with the check that will come in next month". You may want to somehow set aside that money (like moving it to a different account, writing it in your checkbook register, etc.) so that you will know that this amount is no longer available for you to spend - it is being saved to pay off the credit card.

As far as which card to apply for, if you already have a relationship/account with a particular bank, you may want to see if they have a secured card with reasonable terms, even if they aren't on the list that you found.

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