How to Be Approved for a Secured Credit Card
A secured credit card can help you establish a good credit history or repair a poor one. When applying for a secured credit card, you will be asked to put a certain amount of money into a savings or checking account as collateral. The amount of money put into the account becomes the maximum amount you can charge on the card. As your credit improves, the lender may allow you to switch to an unsecured credit card that doesn't require collateral.
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Instructions
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How to Be Approved for a Secured Credit Card
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Compare secured credit cards by conducting research online or by contacting banks directly. Ask for information in writing before applying for any type of credit. Secured credit cards will vary in interest rates, annual fee, and other fees assigned by the bank. Compare as well the interest paid on accompany savings accounts. Internet comparison sites include bankrate.com, eopinions.com and credit.com.
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Fill out all information requested on the secured credit card application. You will need to provide your Social Security number, current employer's name and your income. Most banks require you to open an account with them in order to be approved for their secured credit cards.
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Be prepared to deposit at least $300 into a savings or checking account. The amount you're asked to deposit is the maximum amount you will be able to charge on the credit card.
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Wait for approval from the bank. This can be instant if applying online or may take three to five days.
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After receiving approval, you will receive your secured credit card in the mail usually within five to seven business days.
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Tips & Warnings
Always shop around for the best deal. Avoid banks that charge hefty application fees, annual fees and other fees. Use a secured credit card to rebuild damaged credit due to a divorce, illness, or other tragedy. Buy a few items each month, but make sure to pay off the balance in full by the due date to avoid interest charges and to build a good credit history.
Research banks and other lending institutions thoroughly before applying for a secured credit card. Contact a customer service representative if you have any questions before completing the application process. When applying for a credit card online, make sure the lender's website is secure.
