How To Get Secured Credit Cards

Obtaining excellent credit takes almost a lifetime to accomplish; unfortunately losing it doesn’t. If you have filed for bankruptcy or have poor or no credit looking into buying a secured credit card might be the right move for you. With a secured credit card you can build or rebuild your credit standing and qualify for an unsecured credit card in the future. Here’s hot to get secured credit cards and some helpful information.

Who needs a secured credit card
There are two major groups that usually benefit from secured credit cards. The first group are those who have not yet established any sort of credit history, and the second are those who are trying to rebuild their credit history. A secured credit card works just like a regular credit card; you can make any type of purchase you want (so long as it is within your amount of deposit).

Choosing a secured credit card
Like it or not, in our society almost everyone needs at least one credit card. And being approved for one is typically not hard if you have a clean credit history. For the rest of you who may not have the best credit history there are secured credit cards. Depending on where you bank is a good starting point at choosing a secured credit card. Some banks will offer them and some will not. If your’s does not, then look around and see who does. Choosing the right card for you is important. Make sure you ask your banker what kinds of fees come with it, how much you are required to deposit, and any other questions you can think of. Some cards have annual percentage rates & fees; low and high. The lower the rate the less interest you’ll pay. Most secured credit cards will give you a grace period; the time you have to pay your current charges in full without having to pay any extra fees or interest charge.

How to get a secured credit card
1. Most banks before they will give you a secured credit card will require that you already have a checking or savings account with them. So if you’re looking to get the card at a bank that you don’t do business with, keep in mind that it is to your best advantage to switch your accounts over to them. This will make it a little easier to get the secured credit card. If the place where you bank offers secured credit cards then there will be no need for switching your accounts over.
2. Once you have established where you need your checking or savings accounts then you will want to go in a talk with the banker. A banker may or may not ask what you need a secured credit card for, but usually they know the two reasons you are there; you either have no credit, or you need to rebuild it. Do some homework before you go in a talk with someone so you know how much money you are depositing onto the card. It is recommended that your initial deposit is large enough to show a decent credit limit on your credit bureau. $1000 is a good number, but some individuals have gone as low as $300 and as high as $10,000. It will save you some time if you have a set amount already in mind.
3. Once you have gone through all the paper work you can then deposit your money, get your card, and start using it. Remember however that secured credit cards are just like regular credit cards in that you will have to pay it off monthly. It is to your advantage to stay up on your payments and to pay the balance off each time. If you only pay the minimum balance fees and charges will incur and interest rates go up.

Qualifying for a secured credit card is easy; it’s remember that you still have to pay it off and staying ahead of the payments that are the hardest part. Hopefully this advice on how to get secured credit cards will help you in your search.