Obtaining a Secure Credit Card

Obtaining a Secured Credit Card

Secured Credit Card

If you're having problems obtaining a regular credit card consider getting a secure credit card.

What Is a Secure Credit Card?

A secure credit card is a card that is issued to an individual that has deposited money into a

special account and the money becomes the security for the credit card. The credit limit of the

credit can be up to the amount of the deposit.

Who Can Obtain a Secured Credit Card?

There is an application process and because of that

I'm sure there are some restrictions. I don't know the

restrictions so you have to inquire from the issuer to

find out.

Steps to Obtaining a Secured Credit Card

Step 1

1) Get a sheet of paper and pen

2) Research institutions that issue secure credit cards and inquire about it.

3) Check financial institutions such as banks and credit union to see if they offer secure credit card

4) Collect contact information so you can contact them

5) Wrtie down everything you find

6) Make a list of companies that offers secure credit cards and create a sheet for each one

7) Call each one

8) Tell them why you want to get a secure credit card

9) Ask how their secured credit card works

10) Ask about their secure credit card fees, interest rates and charges

11) Ask if you are approved for a secure card, how long will it be before you can get an unsecure credit card with them?

12) Ask about the fees, charges and interest rates for their unsecure credit cards

13) Ask do they report secure credit card to the credit bureaus.

If you are trying to establish good credit you will need your secure credit card payments reported to the credit bureaus.

14) Do the above things for several places or banks that offer this type of credit.

15) Then do a comparison

16) Decide on which institution you want to give you credit.

Step II

1) Ask for an application

2) Fill out the application

3) Mail application

4) Wait for approval letter

5) If approved your next step is to make a deposit into an account that you will open with the credit card company.

6) After your deposit you will get a credit card

7) Activate your credit card

8) Sign your credit card

9) Use it wisely

Are There Fees and Interest Rates Associated With Secure Credit Cards?

Yes there are some fees and interest rates associated with having a secure credit card. These fees can be annual fees, application fees and high interest rates. So shop around to see if you can waive any of these fees or get a lower interest rate.

Do Secure Credit Cards Impact Your Credit Report or Credit Scores?

Yes they do. As a matter of fact obtaining a secure credit card is the easiest way to establish credit and can help increase your credit score if used wisely.

At this time of this writing I don't have credit cards, or any credit at all. My credit score is very

low as a result of it too. In order to have some credit I need to apply for a secure credit card.

Then all I have to do is use less than 20% of the credit limit and then pay it in full each month. My credit report will look good as well as my credit score.

Click next page to learn how to use your credit card wisely