How to Get a Secured Credit Card
First Time Visitor? Welcome
FinancialLearn.com is dedicated to finding great deals, free stuff, and promote frugal living. We are delighted to have you here.
Sound Fun? Have our articles delivered to you via RSS Feed or E-mail to be reminded of new and upcoming contests and articles.
Secured Credit Cards are credit cards that are usually issued to one who had bad credit standing or somebody who has no credit standing. These credit cards are called secured credit cards because you are required to put up a deposit as a security. Secured credit cards usually have high interest rates and annual fees.
Step 1
Go to the bank and tell them about your situation. Tell them that you want to get a credit card but you don’t have a credit history or you have a bad credit history. They will accommodate you and they will tell you about their requirements before you can be approved of to get a credit card.
Step 2
The bank will tell you to fill up their application form. You should answer the application form as honestly as possible. If the bank requires that you submit a photocopy of identification cards as part of their operating procedure, you should provide them. Sometimes, these banks have their own photocopy machines, you can give them your identification card and they will be the one to photocopy it.
Step 3
The bank will ask you to give them a guarantee before you application will be approved. You will deposit money to a savings account or you’ll be asked to have a time deposit contract with the bank. You deposit will be the same amount as your credit limit. This is done this way so that in case of default or non payment, the bank is already guaranteed that it will not lose money because of the security that you gave.
Step 4
Since you are just building on credit history or are coming out of a bad debt, you should not give a very high security so that your credit limit will not also increase. You are trying to control your spending and not trying to impress people with your credit card limit. Remember that if you have a lower credit limit, this will help you control your credit card spending. You will have to think twice about your purchases because you might go over the limit and when an emergency occurs, you can’t do anything about it.
Step 5
Once you receive your credit card bill, pay your credit card bills on time. If there are automatic charges on the card, you should pay them right away or any fees. These fees will be added to your statement. Do not delay in your payment or else you will be penalized. As much as possible, try to avoid delays in payment and always try to pay in full.
Step 6
Once you pay your credit card bill, file all your credit card bills and payment receipts in one folder so that when the time comes for you to scan your records, these data will be ready and waiting. Keep them organized. You can start shredding or throwing away those old receipts and bills after a year or when you are sure that it will not have anymore purpose to serve except to clutter your workspace.
Related Posts
- How to Compare Credit Cards
- Chosing the Right Credit Card
- How to Get a Credit Card with Bad Credit
- How to Avoid Late Bank Fees
- How to Get Cash from a Credit Card
- Getting a Low Interest Rate Credit Card
- How to Lower Your Credit Card Interest Rate
