My Credit Score Is Low — Can I Get Plastic?

Q. After I lost my home to foreclosure, my credit cards were canceled. I’m having trouble getting new plastic. What’s my best option?

A.  Think about a “secured” credit card. Issued by banks and credit unions, these require a cash collateral deposit that backs your credit line. For example, if you deposit $500 in that bank account, you can charge up to $500. If you don’t pay, the issuer can take the money from the account.

See also: Can I get a credit card after bankruptcy?

Secured credit cards are widely used to establish first-time credit histories — college students often carry them. With responsible use, they can also help repair an old but damaged record.

The cards may come with sky-high interest and fees. And even then, there’s no guarantee you’ll get one. Issuers often have stiff rules for people with damaged credit records — no recent bankruptcies, for instance. Or you might be required to deposit more money than you’re allowed to charge.

“These cards are not meant for long-term relationships,” says Ruth Susswein of Consumer Action, an advocacy group.  But, with good payment behavior, you might qualify for a mainstream card in 12 to 18 months.  “Get in, pay on time … rebuild good credit and get out again when you qualify for unsecured deals,” she says.