Getting a Guaranteed Secured Credit Card Approval

By Tara Tiemann

Do you need to get a secured credit card? If this is your first time to get one, are you sure you know what to expect? Although it is easy to acquire this type of credit card, regardless of your credit, there are some things that you need to know. In this article, we present a few tips to remember when in search of a secured credit card.

Be prepared to submit a security deposit. Approval is not based upon the applicant’s credit history but on the applicant’s capability to submit the security deposit. The cost can range anywhere from $200 to $500, depending on the bank or issuer. Understand that the amount of your security deposit is also a big factor in the range of your credit limit. Some secured credit cards will match the amount of your deposit. There are also secured credit cards that provide a slightly higher or lower credit line than the security deposit submitted.

Make sure it’s a reputable issuer. Not all secured credit card offers advertised in the market are legitimate and worth signing up. You need to be careful and avoid fly by night companies that are out to rip your off. Be diligent in doing research to find a reputable secured credit card issuer.

Get to know your personal credit standing. Yes, you can get approval regardless of how high or low your credit score is. Nonetheless it doesn’t mean your credit report will not be checked at all. Keep in mind that the interest rate you get will also depend on your credit rating.

It’s better to check your personal credit report to know exactly where you stand before submitting a secured credit card application. If you find errors in your report, ask for corrections first from the bureau that issued your report to increase your credit score.

Set up automatic payment. It is a good idea to arrange automatic payment with your bank. This way, you can ensure that your payments will always be on time. If you’re really serious about rebuilding personal credit, prompt submission of payments is crucial.

Ensure credit reporting provision. Not all secured credit cards offer credit reporting provision to the three major credit bureaus (Experian, Equifax, TransUnion). Through your payment history, you will be able to show future creditors that you are capable of handling credit.

Compare secured credit cards. Although all secured credit cards may offer guaranteed approval, you should still take the time to compare your options. Look for a secured credit card with a good rate. Furthermore, make sure that there are no hidden fees or unfair terms. By doing comparison, you will be able to choose a secured credit card that can help you regain good credit.

The option to upgrade your account. Will you be able to upgrade to an unsecured account after a certain time period? Some issuers of secured credit card will automatically upgrade your account after one year of consistent payment while other issuers may not. If you do not get an instant upgrade after improving your credit, be sure to make the request or switch to an unsecured credit card.

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Topics: Credit | Comments Off

Tags: apply for secured credit card, bad credit credit card, secured credit card, secured credit card offers, secured credit cards

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