There are only so many options for people with deficient credit rating when trying to get credit cards. Paying for deposit is one of the biggest hassles as it may require more than couple hundred dollars. Luckily, the option of secured credit card with no deposit is made available for people who face such situation. This way, everyone can obtain credit card to be used for their own objectives. Aren’t you curious to learn more about it?
Getting Secured Credit Card with No Deposit
Why do you use this kind of credit card? Credit card is typically used to aid someone when making purchase, whether it is virtual or physical transaction. However, beyond that usage, secured card is a way to pick up one’s credit score. Because the score is determined by utilization and new credit, getting such credit card is hopefully will improve it. It is useful for person who does not have credit history or someone who has but it is miserable.
Since deposit can be too costly, you may look for secured credit card with no deposit option. A method that will help you is obtaining authorization of someone else’s credit card. If you are added as an authorized user of a credit card, you can use that card for transactions like it is your own. Of course, this method has its positive and negative sides.
The positive part of this method is no requirement to pay for deposit because it has been shouldered by original card holder. If the main credit card holder maintains great account history of their card, you may also get to receive its benefit. That good history will be added to your own and positively impact your credit rating. But the opposite case might also happen.
If main card holder does not heed to terms of agreement and has bad history with that account, it will impact authorized user’s credit score in negative way. So, instead of gaining benefit, your credit rating will be harmed instead. In other hand, authorized user who neglects on making payment on this secured credit card with no deposit will impact man holder’s score too. It will make it hard for them to gain authorized access for other’s card in the future. Moreover, as an authorized user, you will not get the same privileges as first card holder.
To gain authorized access to a credit card, the main card holder must register your name to card issuer. It takes days for the application to be processed but once done it can finally be utilized for transactions. Pick main holder that has good history with their account. Once you have become an authorized user, it is important to avoid tardiness when paying bills and keep card balance as low as possible.
If you want to become a primary holder of secured credit card with no deposit, some issuers start to offer such chance. However, there are some fees to be made such as annual fee which can reach $99 per year and processing fee. Contemplate your options and choose the best one.