Using a Secured Credit Card to Rebuild Your Credit After Bankruptcy

Rebuilding Credit After Bankruptcy Kansas City

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“You have to use credit to build credit” – a truism about rebuilding credit after bankruptcy.  One of the best ways to do that is to get a “secured credit card” shortly after your bankruptcy.  The problem is that not all banks offer these types of credit cards.  Those banks that do are often located somewhere far away and charge a lot of fees.  Recently, I was lamenting this situation to a friend of mine, who happens to be an officer at a local bank.  He told me about his bank’s secured credit card program, and to be honest, I was shocked at how easy it is to get their secured credit card and that the terms of that program are very good.  I also really like that it is a local bank that you can go visit in person.  It is a huge plus to have a relationship with a local bank and a bank officer that knows you by name.

In this case, the bank is a local bank with multiple locations throughout the Kansas City metro area.  We have a bank officer who is the contact person for these accounts and the bank branch to visit to get the process going.

The “Deal”

You open a savings account with a deposit of anywhere from $250 to $10,000 and the bank will grant you a credit card with a credit limit of the same amount you have deposited into your savings account.  You must pledge your savings account as collateral for the credit card, and you cannot withdraw the funds in the savings account until your account is paid in full and the credit card is closed or the bank determines it no longer requires the collateral.  If you default on paying that credit card, the bank can take the money in your savings account to pay that bill.

The Fees

As of this writing, the only fee to get this credit card is a $25 annual fee.  There are, of course, other fees and interest that apply to the account depending on how you use your card, and a complete list of those is available from the bank.

The Credit Rebuilding

The bank will report your payment history to the 3 main credit reporting agencies – Equifax, Experian and Transunion.  By reporting to all 3 credit bureaus, your credit will improve significantly once you have established a good record of making on-time payments.

Please contact W M Law, 913-422-0909, if you would like the details on rebuilding credit after bankruptcy.  We have a flyer and the forms you’ll need to get a secured credit card account open with that bank. Please note that we receive no compensation whatsoever for endorsing this program – we are passing along what we believe to be a good deal that will benefit our clients.

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Jeffrey L. Wagoner


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