How To Get A Secured Credit Card

One of the most flexible forms of credit you can obtain comes via a secured credit card.
This credit provides you with a capability to use your credit at a wide range of locations, has an easy to manage monthly repayment schedule, and has very light qualification criteria. As such this type of credit is ideal in helping you either build credit history or repair damaged credit history. When looking for this form of credit the process involves researching available credit providers, applying for a card, and funding your account.

How To Get A Secured Credit Card: Research

Many financial institutions provide secured credit cards and so your first step will be to research your available options. When looking for a secured credit card, you should consider any potential rewards associated with the card, the credit limits available, repayment schedules, and the flexibility available to convert these cards into unsecured credit cards. Each card caters to a different audience and so ultimately you will have to make a tradeoff between these items.

How To Get A Secured Credit Card: Apply

Once you have identified a secured credit card that works for you then your next step will involve applying for the card. The application process for a secured credit is much simpler than that for a secured credit card. When looking at how to get a secured credit card at a given financial institution you should expect approval to come much easier than it does for an unsecured card. This is because your credit card is backed by an amount of cash that you provide into a savings account so the bank takes little risk in offering you such a card. The financial institution will still ask for your credit history but this history will not play as large a role as it does for unsecured credit. If anything providing this history to them is to your advantage, as they will report your good payment history to the credit bureaus and thus you will build good credit.

How To Get A Secured Credit Card: How It Works

The one element that is different in how to get a secured credit card from a regular unsecured credit card is that you will have to deposit money into an account that backs the credit card when you get approved. This amount of money will usually be equal to the credit line you are extended and so you should be able to deposit an amount equivalent to the credit line you are interested in having.

Applying for a secured credit card is straightforward compared to applying for unsecured credit. You should expect a streamlined application and approval process. This is a great tool to build credit history if you do not have great credit history and so you should definitely consider one of these cards if you are having trouble getting an unsecured credit card.


Source: Credit Cards For People With Bad Credit Rating

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