How to Get a Secured Credit Card With Bad Credit

Using credit cards helps to build your credit history. Unfortunately, applying for an unsecured major credit card with no credit history or bad credit may result in a denial. Other options are available and if you can't get an unsecured card, perhaps it's time to look into secured credit card options. These cards work like traditional credit cards. But unlike unsecured cards, these require collateral and usually feature other fees.

Things You'll Need

  • Bank account
  • Deposit


    • 1

      Find employment. While easier to obtain with no credit history or bad credit, secured credit cards do necessitate steady, verifiable employment.

    • 2

      Look for banks that offer secured credit cards. Visit local bank branches and credit unions to see if they offer secured credit accounts. Compare secured credit card fees and rates online at

    • 3

      Choose a bank that reports to the credit bureaus. Not every bank reports secured credit accounts to the bureaus. Speak with a representative directly to see how often they report to the credit bureaus. Regular updates are needed to build a good credit score.

    • 4

      Open an account with the chosen bank. Select a bank to obtain your secured account and then open an account with the institution if you don't already have one.

    • 5

      Complete the credit application and pay the start-up fees. Thoroughly complete your application and pay the required security deposit, usually $300 to $500. Pay other fees such as account set-up fee and monthly maintenance fee.

Tips & Warnings

  • If you belong to a credit union, it may offer a secured card with low interest and no annual fee.
  • Predatory lenders offer secured cards that have fees that can nearly equal your deposit, costing you hundreds of dollars and making the card virtually worthless, since it will have almost no line of credit.
Related Searches


  • Photo Credit credit card and hand image by Warren Millar from

You May Also Like

Related Ads

Related Searches
Basic but Sometimes Overlooked Tips Can Save You Time and Money Read Article

Basic but Sometimes Overlooked Tips Can Save You Time and Money