Secured Credit Card Basics: Step By Step Process to Getting a Secured Credit Card
Secured credit cards are an excellent way for people to build credit, restore credit and establish credit.
Bad credit, no credit and a limited credit history can all benefit from having a secured credit card.
Secured credit cards allow men and women to take control of their finances.
With a secured credit card, there is no need to wait for a bank or credit union to decide if they can issue you unsecured credit.
Secured credit cards put consumers in the drivers seat on the road to building a solid financial credit history.
This step by step guide will show you exactly how to get your very own secured credit card.
Following our secured credit card guide, you will be on your way to financial freedom and security.
Are you ready to get started with establishing a good credit history?
Ready, Set, Go
1. Credit Report: Before starting the process to get a secured credit card, it is important to request a copy of your credit report.
Reviewing your credit report will provide you with details regarding credit accounts, balances and other important credit related information.
You can request a copy of your credit report by contacting one of the three major credit bureaus.
Equifax, Transunion and Experian are the three major credit bureaus in the U.S.
When requesting a copy of your credit report, be sure to ask for your credit score.
Higher credit scores mean better available options for credit.
Consumer credit scores can range from 300-850.
In order to protect your personal credit, it is important to review your credit report and scores regularly.
Regular reviewing of your credit report will help to detect credit reporting issues or inaccurate information in your credit file.
2. Shop Around: compare banks and credit unions to determine the best available option for your secured credit card.
Most banks and credit unions offer secured credit cards with credit limits between $300-$5000.
Here’s a list of Banks and Credit Unions that offer secured credit cards:
- PNC Bank
- Bank of America
- Citi Bank
- SunTrust Bank
- M &T Bank
- Navy Federal Credit Union
- Wells Fargo Bank
- USAA Savings Bank
3. Complete All Required Secured Credit Card Paper Work: once you have decided on a bank or credit union, complete the required secured credit card application.
Many banks and credit unions have options available for customers to apply for a secured credit card online, in person or over the phone.
You will need to decide which option is most convenient for you.
During the application process, you will need to provide your secured credit card security deposit.
Again, the required security deposit will be between $300-$5000.
The required security deposit will be determined by the available credit limit.
4. Plan, Prepare and Execute: Develop a solid plan to build a good credit history with your new secured credit card.
Building a solid credit history will require timely payments.
Payment should be made on or before the statement due date.
Good credit card management also involves not charging over your available credit limit.
By following these simple secured credit card tips, you will be able to rebuild or build a solid credit history.
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