Watch Related Videos
comments
A lot of people feel more comfortable applying for guaranteed secured credit cards as opposed to unsecured cards. There can be many reasons for this. There are plenty of credit card companies out there that offer guaranteed secured credit. Here are a few tips to keep in the back of your mind when you search for the perfect card offer.
Tip #1 - Costs
All secured credit cards will require a deposit of some kind. If they don’t want you to mail in a check to cover this, they may tack the additional costs on to the card when you apply for it. This will lower your overall available credit until you are able to pay this down. The start up cost for a secured card can be anywhere from $70-$300. If you choose a card that automatically bills the fee’s and deposits to the card balance, the chances of getting an approval are much higher.
Tip #2 - Reputable Companies
There are a lot of fly by night secured card companies out there. Make sure you are only applying with companies that have a proven track record. Check to see what bank backs up the cards. This can be found in the fine print on the application. If you are applying online you will see an option to view the terms and conditions. The financial institution that holds the actual account will be found here. Do some research, make sure they are a legitimate company. You are much more likely to get a secured credit card through a company who has been around for a long time than one that just started issuing cards a few months ago. This will also help protect you from fraud.
Tip #3 - Credit Requirements
Even though you are looking at secured credit cards, many of these companies will still have minimum credit requirements that must be satisfied. Most of the time these are pretty lenient with a secured credit card. It’s a good idea to pull a copy of your credit report so you are armed with all the information you need. With a secured card they generally want to see that you haven’t defaulted on other secured cards, and don’t have any major delinquencies. And even if you do have major delinquencies this doesn’t put you out of the running for a secured card. You will just have to find a secured card company that will either not run a credit check, or one that has very lenient policies.
Tip #4 - Automatic Payments
Many secured credit card companies will look more favorably on someone who sets up automatic payments on the accounts. You can generally do this at the same time you apply for the card if they have an instant approval process. Setting this up is a smart thing to do. It not only casts a more favorable light on you, but it is a good way to maintain a good credit score.
Whatever the reason is you’ve chosen to apply for a secured credit card, with some basic knowledge you can be guaranteed approval for one.
4 Tips for Guaranteed Secured Credit Card Approval
|
Find the Best Credit Card
|
||||||||||||
