Those finding trouble in getting conventional credit card should know that they still have another way to enjoy the convenience of credit card. Have you ever heard about secured credit card? This is actually your life safer if you need badly need card. Secured credit card refers to credit card type that requires you to submit certain amount of deposit as collateral. This collateral will also be used as your maximum credit limit. How to get a secured credit card? These are 3 main steps that you need to take to get secured credit card.
3 Steps to Get a Secured Credit Card
As aforementioned, you need to have collateral to open the account. Since you have collateral deposit, the credit card issuers tend to be less picky. Most of them do not really consider credit card history, instead they easily approve your application even though you have not-so-good history in the past. You need to consider these steps related to how to get a secured credit card.
- Sort out trustworthy secured credit card issuer
It is necessary to find out as much information before fall your decision into certain bank or provider. There are lots of choices out there, making it rather overwhelming to decide the best one. Some of them offer good deals, while the others are full of scam. There are some tips to shortlist secured credit card.
First, you can find one from major card issuer. Almost major card issuer provides secured credit card. Aside from being trustworthy, major card issuer tends to give better feature compared to not-so-popular issuer. You also need to find information related to the connectivity to major credit bureaus. Good secured credit card issuer should report the credit history each month.
Another thing to consider is the best card criteria. Best card should meet criteria such as low interest and low/no annual fee. Many providers give high interest rate, which sometimes give extra burden for you to keep the credit card history on track. Meanwhile, the annual fee can be avoided. Some credit card provider offers no annual fee, while some other charge low fee. This can be a good reason to choose them.
- Estimate security deposit
The next step of how to get a secured credit card is by making security deposit estimation. Minimum deposit actually varies, ranging from $200 to $500. Some issuers allow the customers to upgrade the deposit freely while other will charge you. If you wish to get low minimum deposit, Capital One secured credit card requires surprisingly low deposit, which is $49. With this amount of money, you can get credit limit as much as $200.
- Complete card application
There are some ways of secured credit card application, including online, by mail or in person. In case you want to apply online, the card issuer will give instructions to make the deposit. This can be done online, too. The issuer will process the application and you can get the card soon. Those are simple steps of how to get a secured credit card.