How to Obtain a Secured Credit Card

Are you needing to repair or build your credit? If so, obtaining a secured credit may be the ticket for you. There are plenty of secured credit card offers to choose from including a bank secured credit card and visa secured credit cards.

Instructions

1




A secured credit card requires you make a cash deposit that is basically collateral, and essentially, your credit limit. For example, if you deposit $300 in your account, your credit limit would be $300...IDEALLY!! This takes me to my next step..

2




Don't set yourself up for disappointment by being hasty and getting the first secured credit card you see. Annual fees and setup fees etc. will vary greatly. Be sure to read the fine print and requirements before you choose a secured credit card. Make a spreadsheet and compare your top 5 choices. Stay away from companies that charge application fees. You don't want to get your credit limit and see that more than half of it was eaten up by fees.

3




You can basically do a search for "secured credit card" and start comparing. If you are a credit union member, start there. Most credit unions offer secured credit cards with very low fees. Bank of America is another good choice with a very low annual fee and no setup fee. Applied Bank also charges no setup fee and a low annual fee. When you find a good one, stick to that one, don't go overboard.

4




Time to Choose. After you have compared and weeded out the high interest and high fee companies, choose your top option and apply. If you are unsure still, call the customer service number for that company and get ALL of your questions answered. This will also give you a chance to see how the customer service department treats their customers.

5




Now that you have applied for the best secured credit card for you, sit back and wait for it in the mail. Once you get it, read all the materials included with it and make sure it is consistent with what you had agreed on. Check the APR, annual fee, and all other restrictions BEFORE you activate. After everything is verified, go ahead and activate your card and spend wisely. Make sure all your payments are on time and don't charge more than you can pay for in full. It's not a good feeling to not be in control of your debt.