Pennsylvania readers who have been turned down for a secured credit card may be wondering what they can do to rebuild their credit. A secured credit card is a great way to re-establish a person's credit rating following a bankruptcy or other financial setback. However, it is possible for someone to be turned down for a secured credit card, according to some credit management writers.
Issuers of secured credit cards have different approval requirements, but all are likely to require at least three things from prospective cardholders. At a minimum, financial institutions may want verifiable income, funds to secure the card and a demonstrable ability to pay the debt.
Federal statues require financial institutions to verify potential customers' identities and whether they have the ability to repay the loan. Furthermore, card issuers are required to verify that an applicant is able to repay the debt by the U.S. Patriot Act. In addition, financial institutions are required by the U.S. Patriot Act to take reasonable steps to maintain detailed records and verify the identities of their customers.
An attorney with a background in bankruptcy and debt management may assist an individual with the process of declaring bankruptcy and negotiating with creditors. For instance, an attorney may halt creditors' actions, such as harassment, utility shut-off, and foreclosure by working to enforce the automatic stay that is put into place when a bankruptcy is filed. In addition, the attorney might also act as representative throughout the proceedings, speaking on a client's behalf in meetings with creditors and the bankruptcy trustee.