How to Apply for an Unsecured Credit Card

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To apply for an unsecured credit card with bad credit, make a cash deposit with a credit company, receive a card backed by the cash, and build up better credit by making regular payments on the credit card. Increase your lines of credit over time with help from a registered financial consultant in this free video on personal finance and money management.

Part of the Video Series: Personal Finance Tips
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Video Transcript

This is financial advisor, Patrick Munro, talking about how to apply for an unsecured credit card. Basically, an unsecured credit card involves a person who has bad credit, and they just can't get a credit card in that sense of the word. What they would then do is provide their own security. What they would do is they would place a cash deposit with a credit card institution. It's really their own money. They would be given back a card with a card number on it and a Visa or MasterCard logo and this appears to be a regular credit card. In the course of a month they would spend down their own money that has been put into that card. And then of course, if they need more money they would recharge it with their own resources. This; occurring over a period of several months is tracked by the company that does give you the card, and if you're successful and have not gone over your limit they tend to put up their own money and increase your credit lines going forward. This is the way to apply for an unsecured credit card when you have bad credit. And this is financial advisor, Patrick Munro.


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