How to Get Approved for a Credit Card With Bad Credit by Paying a Deposit

If you are struggling with debt or simply just bad credit, your options for financing are limited. Most major lenders will not lend to consumers with poor credit, and nearly all local credit unions and banks only finance those with excellent credit. However, you do have one guaranteed option: a secured credit card. To obtain a secured credit card, you need to make an initial deposit.

Instructions

1

Check your credit first. You may have the scores to qualify you for a no-deposit credit card. Visit the website in the Resource section. This will give you a free copy of your report. Pay for a FICO score also. This is a three-digit number between 300 and 850. If your score is above 600, you may have a chance with some finance companies.

2

Check your bank account. Most secured credit cards require an up-front deposit of at least $200. Your deposit will be the credit line on the credit card. Your money will be securing the credit you use on the account. Without a deposit, you cannot open a secured credit card.

3

Research secured credit cards. Only consider those that report to the credit bureaus. This is the biggest benefit of the secured credit card. If the card does not report to the bureaus, it is simply a glorified prepaid debit card. Most major banks offer some form of credit-reportable secured card.

4

Choose the card that most appeals to you. Some cards have retail discounts, others can earn you miles, some are fee-free; the account should reflect your priorities.

5

Pay the creditor the initial deposit either online or with a check. You cannot use your card until these funds have cleared. Most creditors set up a "collateral" account--a savings account specifically used to secure your card.