Applying for a secured credit card can be daunting, especially if you’ve never applied. So it’s important to know what to expect and how to improve your chances of receiving approval. You will be walked through some steps on how to apply for your best secured card so you can be prepared the next time you want one!
You may need to know your credit score before you apply for a secured credit card. If so, here are the steps to take:
- You can find free scores at a bank or credit union near you.
- Apply for a secured card if your score meets the minimum requirements set by each issuer.
Pre-qualification is the process of getting pre-approved for a loan. This allows you to show lenders that you have enough money in your bank account for them to extend your credit.
The benefit of getting pre-qualified instead of pre-approved is that it doesn’t put any obligations on either party. And allows people with bad credit or no credit history to get a feel for what kind of rates they should expect from different lenders when they apply.
It’s best to improve your credit score first to increase your chances of getting credit card approval. This means paying all your bills on time, reducing your debt and paying off any outstanding balances in full each month. You may also want to consider having the following information ready:
- Your Social Security number (SSN).
- A copy of a recent pay stub.
- Proof that you’re employed.
Once you have decided that a secure credit card is suitable for you, be sure to choose the best option for your needs.
- First, ensure that the secured credit card issuer offers cards with low and no annual fees.
- Second, find out if there are any hidden fees for using this type of card (such as an early termination fee).
These should not exist when choosing between secured credit cards since they are designed specifically for people who may not have good enough credit scores yet but still want access to purchasing power through their bank account or line of credit.
- Start by searching for credit cards online.
- Look for a secure credit card that fits your needs and offers rewards.
- You can get a low-interest rate with a secured card, a low annual fee and no deposit.
To get your card, you’ll need to deposit $200. This $200 deposit is usually refundable if you don’t end up using the card — but it may not be interest-bearing.
According to Lantern by SoFi professionals, “Secured cards differ from other credit cards because they require the cardholder to pay a refundable security deposit, which typically becomes the amount of the card’s credit limit.”
If you follow these steps, you should be able to apply for a secured credit card successfully.