Apply for a Secured Credit Card: The Steps to Follow

What is a secured credit card

A secured credit card requires cash to back it up. You have to apply for secured credit card services through your bank, which establishes a special account they use to cover your purchases. That way there are no late payment options and no default on your debt.

Why would I want this

Secured credit cards are excellent for people who have had credit trouble in the past. First of all, they remove a lot of temptation since you can't misuse them. But more importantly, building up your credit rating is the main bonus.

When you apply for secured credit card services, you're essentially getting a debit card -- with one essential difference. The "payments" you make on your secured card are legitimate credit payments just like any other credit card payment. That means using this card ensures that you are rebuilding your credit score.

How do I get one

The best chance of getting a secured credit card lies with a bank in which you have a history of dealing. Speak to someone in charge of credit and explain what you want and your situation. Since secured credit cards present no risk to the bank, they are likely to approve your application.

Better still, you're not stuck in this situation forever. Often banks will turn a secured credit card into a real credit card if you continue to build your credit rating and maintain a clean record. So if you're struggling because of a poor credit history, or no credit history at all, why not apply for a secured credit card --after all, you have nothing to lose.