How to Obtain a Secured Credit Card
If you need a secured credit card it will be necessary to
do some research. Check around for banks and credit card issuers
who handle secured cards. When you find one you think you
like read their fine print. If you still like them you need
to contact them and find out what their procedure is. Generally
you will open a savings account or CD account in their bank
in the amount of the credit line on your card. Usually the
deposit is around $300 to $500. Then they will issue a card
to you good for the amount on deposit.
Banks and credit unions have secured credit cards. You can
look at the list of secured credit cards. Look through the
list of institutions and read the small print, the dues and
fees and restrictions.
Along with the security deposit there may be other fees. The
first month payment will generally cover those, then you are
free to go. Just spend wisely.
Different companies have different requirements for applicants.
Some will be fine with just the secured deposit, some may
want a minimum income requirement, and some have bank account
requirements and want credit reports.
It's important to remember that repairing your credit will
take time and discipline. Pay all your bills on time and pay
off your credit balance in full each month, borrow only small
amounts and doní»t get over extended. It will take about 12
months of good credit reviews on your secured credit card
to improve your credit history. At the end of that time period
you may qualify for unsecured credit or a larger credit line.
Shop around and you will probably find a secured card
that fits your needs. You can compare secured card issuers
on the secured
card offers page.