Financial Planning for Generation X & Y Women
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Expert Q&A Archive

Should I use a secured credit card to re-establish my credit?
I’ve heard that there’s [a type of credit card] you can put money on, and it acts as a regular credit card, like the Wal-Mart Visa, but there’s a monthly charge for it. So at first I thought well that would be really good, but if they’re going to charge each month whether you have anything on it or not, then having a regular credit card seems like it might be better. What would your advice on this be?
Connie K. Marmet:
expert info »
Re-establishing credit after bankruptcy is an important step. Cards vary in their terms. Several years ago a friend who had declared bankruptcy needed a credit card to cover travel expense for his job. He got one from Capitol One where he had to deposit $2000 cash for which he received no interest but was able to get a credit card. After a set period of time and an excellent repayment history, the deposit was released. I don't believe there was a monthly charge. I would encourage you to shop around for the best terms.
Joan Koonce, Ph.D:
expert info »
This type of credit card is referred to as a secured credit card. If you can manage a regular credit card and pay it off every month, then I would not recommend this type of card. The cost for some of these cards can be relatively expensive.