Things You'll Need:
- Deposit
- Bank account
- Employment
- Credit report
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Step 1
Check your credit report. Although you can obtain a secured credit card with bad credit, the higher your credit score, the better. Get a copy of your credit report before applying for a secured card. If possible, attempt to boost your credit score by a few points, which can prompt creditors to offer you a lower interest rate. If you currently have a few credit accounts (home loan or auto loan, for example), pay these bills on time each month and reduce the balance.
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Step 2
Obtain employment. Individuals without a job or reliable income do not qualify for a secured credit card. Since applicants generally have bad credit or no credit history, creditors request and verify employment information. You'll have to provide the name and telephone number of your employer and provide information on all sources of income (employment, disability, alimony, child support.)
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Step 3
Open a bank account. The first step to building a solid credit history is opening a checking or savings account with your local bank or credit union. It's simple to open a bank account, and you can obtain an account with little upfront cash.
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Step 4
Save money for the deposit. Secured credit cards are collateral-based; to qualify, you'll need to provide an upfront deposit and pay a one-time setup fee. Deposits vary. But in most instances, the spending limit on a secured credit card is the same amount as the deposit.
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Step 5
Compare credit card terms and fees. Secured credit cards vary. Some credit card companies charge a one-time fee, whereas others charge an annual or monthly service fee. Shop around for the best credit card deal. Once you find a credit card company, submit an application for a secured card and pay your deposit.
