Why You Don’t Have Any Credit

There’s a number of reason why millions of Americans don’t have any credit to their name.  Understand that not having credit is much better than having bad credit.  You’ll be starting out with a clean slate rather than a trashed credit score which would take years of hard work to repair.  Here are a number of reasons why you may be looking to get a credit card when you have no previous credit history.

• Age – When many people venture out from their parents home they start off with no credit.  They had very few previous bills and no large purchases while living at home.  Age is the biggest reason young people lack credit history.
• Cash Purchases –  Many people may be in a line of work that pays cash.  Waiters and waitresses are a prime example of this.  They always have a bit of cash on hand so they’ve always paid cash rather than utilize a credit card.
• Lack of Knowledge – Another important and unfortunate reason for a person having no credit is a lack of knowledge on how financial purchases work.  They simply weren’t taught at a young age that you’ll need a good credit score to make many of life’s big decisions such as buying a  home or purchasing a new vehicle.  If you’re a parent reading this, be sure to teach your child the value and importance of having good credit and making on-time payments.

Regardless of the reason why you don’t have any credit, you should know that the answer to how to get a credit card with no credit isn’t as difficult or obscure as you may think.  Although there are a handful of banks out there that aren’t operating in the best interest of their customers, most financial institutions offer tools that allow you to prove to them you will indeed make a great addition to their customer base.

Secured Credit Cards as an Option for Those with No Credit

Secured credit cards have been offered by banks for nearly 25 years as a tool to allow customers with less than desirable credit the ability to have a credit card with their institution.  With the recent credit crunch and housing crunch of 2008 we’ve seen a huge increase in secured credit card applications as people face bankruptcy and foreclosures on homes.  Those facing these economic pitfalls also need to start over with their credit building and often turn to a secured credit card to prove to the banks that they really are good customers that hit unfortunate economic times.

Secured Credit Card Basics

Here’s a quick hit list of what a secured credit card is and what it isn’t.

What Secured Credit Cards Are:

• A secured credit card is a tool to rebuild your credit score.
• Many secured credit cards often have a small yearly fee (usually $20-$50 annually).
• Many have an application fee but some do not.
• Secured cards are generally instant approval, no more anxiety while waiting for an application approval or denial.
• All secured credit cards require you to maintain a balance in an account that will be used if you become delinquent on your payments.  That balance is often the maximum you’ll be allowed to spend with your card.
• Many secured credit cards offer the ability to graduate to a regular (or unsecured) credit card after 6 months to a year of on-time, regular payments.

What Secured Credit Cards Aren’t:

• They’re not a card that you can max out and then make payments on, you need to use them responsibly or you could harm your credit score.
• They aren’t a quick fix.  You should look at a secured card as a 6 month to a year time investment to see positive results.  Remember that since we’re dealing with how to get a secured credit card with no credit, not bad credit, you may find yourself graduating to a regular card much sooner.

How Long Does it Take to Achieve a Good Credit Score When Starting From No Credit?

With a secured credit card we’ve found that most people can increase their credit score within 6 months of making on-time payments on their account.  Since most people that utilize these cards have bad credit, you’ll have a distinct advantage in that you’re starting off with a clean slate.  One of our readers reported they were able to increase their credit score from a 560 to a 720 within 4 months of using a secured card when they started off with no credit history to their name.  If you do all the right things like setting up payment reminders and keeping track of spending limits, you’ll be well on your way to a great credit score and a mailbox full of credit card application requests.

Insider Secrets to Boosting Results with a Secured Credit Card

• Only spend 30% of the maximum credit limit you have on your card.  We find that this is the sweet spot that banks like to see.  If you overspend and get close to your limit using a secured credit card then they can only assume you’ll be irresponsible with one of their regular credit cards.
• Pay down your entire balance each month rather than carry a balance over.  Some people may tell you that you always need to carry a balance on your card but this is simply not true with a secured card.  Pay the entire balance off each month and better yet, pay the entire balance as soon as it’s posted.  Another reason to do this is secured credit cards usually have an APR of 20% or higher which equates to high interest rates paid on your balance.
• Utilize Online Tools.  If you know you’re forgetful then take advantage of online tools that send e-mail alerts and text message reminders.  We also recommend adding an entry on your calendar in your iPad, smart phone or Outlook calendar to make sure there’s no way you’ll miss a payment.

I Understand How to Get a Credit Card with No Credit, What’s the Next Step?

The next step is to fill out a secured credit card application.  You can visit your local bank to do this but the easiest and fastest way is to fill out an online application.  We recommend sticking with a larger financial institution when applying for a secured card.  Be sure to also look at their regular credit cards and see what bonuses and rewards they offer since your goal here is to graduate to one of those once you’ve got an exemplary credit score.  These larger banks will also generally have better reporting tools and more advanced features which help you pay your bill on time.

Our Top Secured Credit Card Picks for Individuals with No Credit

We’ve compiled a list of our top secured credit cards for people with no credit.  We’ve also included a “Who it’s for” guide which should help you choose a card based on your style of spending.  If you’ve reviewed our top secured credit cards for 2012, you’ll notice our list is a bit different in this circumstance. The reason for that is that you’re in a different category of users than those with bad credit scores which we take into consideration with our recommendations.

#1 – Capital One Secured Credit Card

Capital One has been around for a long time and offers the security, features and reliability that go hand in hand with choosing any reputable company.  Their online reporting is bar none and they offer all the fancy e-mail alerts and messaging systems to be sure you pay on time.

A Rundown of the Capital One Secured Credit Card:

• Application Fee:  None
• APR: 22.9%
• Annual Maintenance Fee:  $29
• Down Payment: $49, $99, or $200 depending on your credit score.
• Credit Line: Your down payment gets you a $200 spend, increase your down payment for a maximum of $3000.
• Automatic Reporting to Credit Bureaus: Yes

Why we like it:  Since you’re starting off with no credit, we like the low maintenance fee and the $0 application fee.  Capital One also has great unsecured credit cards with fantastic rewards programs to graduate into.

Who it’s for:  Those looking for a short term boost to their credit and are looking to pay off the balance in full every month.

Check out our full Capital One Secured Credit Card Review

#2 Wells Fargo Secured Credit Card

At our #2 spot the Wells Fargo Secured Credit Card is a great option for those with no credit to start building their credit score.  Like Capital One, Wells Fargo is an established and well respected financial institution which offers a suite of tools to keep track of your spending and billing.  The card also has our second lowest APR but a higher yearly maintenance fee.

A Rundown of the Wells Fargo Secured Credit Card:

• Application Fee:  None
• APR: 16.49%
• Annual Maintenance Fee:  $25
• Down Payment: $300 minimum
• Credit Line: $300 to $10,000 depending on your down payment
• Automatic Reporting to Credit Bureaus: Yes

Why we like it:  Like the Capital One Card we’re fond of the $0 application fee and the maintenance fee is very reasonable.  If you plan on building your credit faster then the $10,000 credit line may be a good choice for you as long as you pay the balance down at the end of the month.

Who it’s for:  Those looking for a reliable secured card and may have a small balance rolling over in their account every now and then.

Check Out Our Full Wells Fargo Secured Credit Card Review

#3 Orchard Bank Secured Credit Card

Orchard bank is offering a secured credit card with an unheard of 7.99% APR, one of the lowest in the industry and very on-par with unsecured credit cards.  They offer both a Visa and a Mastercard version of their secured cards depending on your preference.

A Rundown of the Orchard Bank Secured Credit Card:

• Application Fee:  None
• APR: 7.99%
• Annual Maintenance Fee:  $39-$59
• Down Payment: $300 minimum
• Credit Line: $300 to $10,000 depending on your down payment
• Automatic Reporting to Credit Bureaus: Yes

Why we like it:  The low APR is what pushed this card up our list.  Orchard Bank also offers great reporting tools and reminders just as our other top cards.

Who it’s for:  Those looking to carry a balance on their secured credit card.  The high maintenance fee makes this a bad card for those paying offer their balance in full every month and simply using it as a way to boost their credit score quickly.

Do Your Own Research on How to Get a Credit Card with No Credit

The most important piece of advice we can give you is to do your research and read all the fine print when looking for tools to build your credit.  You have the advantage of not having any strikes on your credit history so use a secured card responsibly and you’ll be well on your way to a perfect credit score you’ll be proud of.

Financial freedom is a wonderful thing.  Anyone that tells you otherwise is either misinformed, in debt and in denial, or has grown up in wealth and has no concept of its intrinsic value.  We aren’t talking about driving around in an exquisite sports car and buying houses in the French Riviera kind of wealth, but instead we’re talking about the kind of wealth that allows you to sleep comfortably at night knowing that your finances and future are sound and affording yourself the opportunity to enjoy the finer things in life like a relaxing vacation and spending time with your kids or grand kids.  We’ve known too many people that have that shiny sports car and multiple homes that are working day in and day out to afford their luxurious lifestyle.  On paper these people are penniless with a debt to income ratio that would make Uncle Sam himself cringe.

So let’s get to it.  Our list will comprise everything from how to buy smart all the way to the type of job you choose for yourself and even the best way to live your married life.  All these life choices you make from your first paper route to your retirement all add up to a successful and financially sound lifestyle.

#10 – Marry Right and Marry Once

A divorce will cost you… big.  From giving up one of your most important equity vehicles – your home, to alimony payments, you’re going to end up losing much of your wealth in a divorce.  By taking your time and knowing that you’re compatible with your mate before marriage, you’ll have the security of knowing that no matter what, the two of you are a team – in both your daily life and your financial life.  The added benefit of marrying right is having a friend to bounce ideas off of and the benefit of keeping each other in check regarding your financial decisions.  Add a combined income to the mix and we’re sure you get the idea of why a sound marriage means a sound financial future.

#9 – Don’t Buy Your Lifestyle – Rent it

It’s easy to get sucked into an extravagant lifestyle.  Seeing your friends on the lake in their shiny new boat or hearing about the beach house they recently purchased may appear to be a tempting goal for you as well.  We can tell you that you’d be much better off renting that same lifestyle rather than buying into it as your friends have.  Why not rent that beach house on the ocean for a week and then have the luxury of going somewhere else next summer?  Why not rent a boat for a few days and let someone else deal with the maintenance and storage?  Name any extravagant item or lifestyle and we can guarantee in the long run it’ll add up to a very poor investment and a difficult debt to get rid of.  Vacation homes are often notoriously bad when it comes to resell value.  The same goes for boats, planes, luxury cars, time shares… you get the idea.

#8 – Be an Owner, Not a Worker

While owning your own business isn’t for everyone, doing so can put you on a fast course to wealth and financial freedom.  You get many benefits as a business owner such as higher allowable contributions towards retirement (see a SEP Roth) and no limitations on salary.  We know many very successful people that worked in a business or trade for a few years before venturing out on their own.  Most of these people knew they could do a better job of running a company and some even bought out the company they previously worked for.  We realize this route isn’t for everyone and if you’re content being a worker bee then be sure to choose a profession that has a high payout.   It’s much easier to attain wealth when you have more money to consistently put away.

#7 – Start Saving Early

We don’t care what investment vehicle you prefer as long as you start it early.  A dollar saved and invested in your twenties is worth 10x as much as a dollar saved in your fifties.  Regardless of if you’re investing in Gold, the stock market, or rental properties, be sure to get started early so you can reinvest faster and smarter when you’re young.  You can ask just about any investor what their one desire would have been in their investing career and the one common answer is always “I wish I had begun investing earlier.”

#6 – Simplify Your Financial Life

The less you have to worry about your finances, the more time you can spend focusing on acquiring wealth.  Put bills on automatic payment.  Have money automatically placed in a Roth IRA every month.  Automating your finances allows you to sleep better at night and make more sound financial decisions during the day.  You’ll also be protecting your credit by insuring you’ll never have another late credit card payment or missed mortgage payment that could tarnish your credit score.

#5 – Max Out Tax Advantaged Investment Accounts

A good friend once told me there’s a whole team of experts in Washington DC whose sole job in life is to figure out how to get your hard earned money from you so there’s no shame in looking for every loophole to keep it in your pocket where it belongs.  The government allows for many ways to stay on the right side of the law and keep your money at the same time but most never take advantage of these tools.  SEP, ROTH and Traditional IRA’s allow for a variety of tax-advantaged saving opportunities that have a wide range of advantages depending on your goals.  In the wealth game every penny counts so take advantage of every tax advantaged savings vehicle you can.

#4 – Hire to Learn Rather than Learn to Hire

When you hire a professional to help you with investing, taxes, real estate or any other service, pay them to show you how to do things rather than do them for you.  This might cost a little more up front but will save you thousands or even tens of thousands in the future.  Another advantage to hiring someone to teach you is that even if you choose to hire a professional for certain tasks in the future you’ll know the lingo and terminology so that you know exactly what they’re doing and how long it should take to do them.

#3 – Insurance is Insurance, Investments are Investments

Don’t be sucked into the fancily named insurance plans out there that are pretending to be investment vehicles.  It’s no big secret that non-term life insurance plans are products developed to be sold by salesman, not to be bought by consumers.  Although at some point in your life you’ll probably have some smooth talking “friend” or acquaintance tell you otherwise, keep your investment plans far away from your insurance plan and you’ll come out on top.

#2 – Keep Your Fixed Expenses Low

No matter who you are or what social class you’re in, we all hate debt.  While some debt is a necessity in life, such as a home loan, most debt and expenses can be lowered or better yet, removed.  Take a hard look at what you’re spending each month and figure out ways to break your dependence.  From calling the cable company and asking for a discount to starting your own vegetable garden, there’s many ways to lower your monthly expenses and live a healthier, more fulfilling life in the process.

#1 – Make Your Money Work as Hard as You Do

The old adage “Good Investing is Boring Investing” certainly holds up no matter what the current investment trends or fads.  Make sure your portfolio is well rounded with a solid base consisting of index mutual fund investing and fixed asset allocation.  Slow and steady ALWAYS wins the race when it comes to investing.  Although at the time of this writing interest rates are nearly non-existent, you can always find some sort of investment vehicle that compliments the economic times.  Are foreclosures up?  Take some money out of your savings and invest in a foreclosed home in a good neighborhood with good schools and turn it into a rental income property.  Since the beginning of mankind there has always been a way to make your money work hard for you with smart decision making.

Make Your Own Plan and Apply it Today

We hope that you were able to apply a few of our wealth tips to your life.  Remember, the difference between the haves and the have-not’s is the ability to take action.  Sit down today and write out both a short and long term wealth plan and start acting on it today.  The only person that can get in your way on your journey to financial freedom is yourself.

How We Choose the Best Secured Credit Cards for 2012

Our criteria hasn’t changed much from last year. We’re still looking at application costs, late payment leniency and of course, the most important factor, interest rates. Although this article is only covering the best cards for 2012, remember that there are a lot of scams out there and unfortunately, there are some banks out there that aren’t interested in helping you increase your credit score through one of their secured credit cards.

Orchard Bank Secured Credit Card

The Orchard Bank secured card is our #1 secured credit card for 2012. The Orchard Bank Card knocked down the Capital One Card from last year’s top spot for the simple reason that the Orchard Bank Card as a ridiculously low interest rate of 7.99%. It looks like the executives at HSBC have recognized that a lot of Americans fell into tough economic times during the past year and anticipated there would be a big market in 2012 for individuals looking to better their financial health. In fact, the Orchard Bank Secured Credit Card is so consumer friendly that the bank blatantly advertises this card as one of the best ways to build your credit.

Along with the low rate, Orchard Bank provides a text messaging and e-mail message service to make sure their card holders who are on the forgetful side won’t miss a payment and further damage their credit score. The only drawback to the Orchard Bank card is a $39-$59 yearly fee but this is to be expected from a secured credit card with such a low interest rate. The savings you’ll accrue from the low interest rate alone should be enough to convince you that the annual fee will pay for itself during the course of the year if you plan on carrying a balance. Combine all these benefits with no application fee and you’ve got a number one ranking in our list of the best secured credit cards for 2012.

Additional Benefits of the Orchard Bank Secured Credit Card

• Manage your account 24/7 with their online account management
• No more late bills with their mobile text and email notification system
• Orchard Bank Secured Credit Card is accepted a millions of retailers nationwide
• Free online bill pay with no limitations on usage
• You’re protected 100% against unauthorized use and you can even set up your own spending limitations and alerts.

Capital One Secured Credit Card

Even though the Capital One Secured Credit Card has been dethroned from last year’s number one spot, it’s still a very competitive card with a very good interest rate and a feature-packed account management portal. Although the Capital One Secured Credit Card has a significantly higher rate of 22.9% that our #1 secured card this year, don’t let that deter you from applying. The credit professionals here at SecuredCreditCardRx.com always prescribe paying off the balance on your card as soon as it’s posted to your account. If you follow this advice and are diligent about it then the APR difference between the Capital One card and the Orchard Bank card becomes a mute point. What’s more important is the yearly fee which this card is the clear winner at $29/yr.

The Capital One Secured Credit Card has a minimum deposit of $49/$99/$200 which is based off your credit history and as the company says, your “Credit Worthiness”. Another fact we like is that you can adjust your card max between $49 and $3000 by putting more into your refundable deposit giving the Capital One secured card more flexibility.

Additional Benefits of the Capital One Secured Credit Card

• Automatic reporting to the 3 major credit bureaus
• Track your credit with free enrollment in CreditInform®* which lets you track your credit information and receive credit tools
• Earn credit line increases as you use your card wisely

Wells Fargo® Secured Credit Card

The Citi Secured Credit Card fell off our top secured credit cards for 2012 from last year as it’s been pulled from Citi’s offerings and we’ve replaced it with a secured credit card from one of the most trusted names in the business – Wells Fargo. The Wells Fargo offers many features for those looking to rebuild credit with a secured card and the APR is reasonable as long as you, like us, use the card for its intended purpose and don’t carry a monthly balance. All in all the Wells Fargo secured credit card is a well rounded card offering the highest maximum balance of all the cards we reviewed at a whopping $10,000. Don’t get too excited though as you’ll have to carry that same balance in your account before making any large purchases.

The main reason we like the Wells Fargo Secured Credit Card is for its low $25 annual fee and no application fee. If you’re looking for a card to simply build your credit over a period of time then the $0 application fee and $25 annual account fee will insure you’re spending the least amount per year during the credit building process.

Additional Benefits of the Wells Fargo Secured Credit Card

• Have some fun and customize your card with family photos or sports teams
• Overdraft protection is available
• Automatic Fraud Monitoring and Early Warning Services

Our 2012 Secured Credit Card Wrap Up

That wraps up our list of the best secured credit cards for 2012.  Remember to do your research on a secured card that will match your realistic spending habits and most importantly, remember to use your card wisely in the new year.

Related Secured Credit Card Articles

• Credit Cards to Rebuild Credit
• Credit Cards for Poor Credit
• What can you get with your Credit Score?

Any secured loan is when there is collateral put up against the amount that is borrowed. This is pretty straightforward and quite easy for any consumer to understand. For instance, one can borrow money when there is plenty of equity in their home. If the consumer fails make the payments, the lender is able to put a lien on the home, liquidated if necessary, and take back any money owed to them. In the case of credit cards, they are usually supplied without any security or collateral and the only thing that a lender looks at is the the payment history of the consumer and the amount of debt he or she has at the current time. After a thorough inspection, the lender is able to determine whether it is a safe move or a risky one. If it is risky, then it will be denied. The higher one’s beacon score is, the more comfortable lenders are in providing funding, raising spending or purchasing limits and so on. The lower it is, the higher the risk involved of them being repaid.

If you have a poor credit score then it is imperative to improve it and quickly, however, a consumer may feel as though this is a huge hurdle since no one is willing to lend them money to prove that they can repay the funds. It may seem like a catch 22, but there is a solution that is quite simple and available to practically anyone. It comes in the form of secured credit cards where the customer files an application to submit, either in person or online with all the mandatory fields completed. The individual will have to deposit the funds in a special account that will always give the bank or lender the security they require. It could be compared to a pay-as-you-go solution as you use your credit cards to rebuild credit.

The benefits involved in such a solution are many for the consumer starting with the fact that they have available funding to make purchases with. In addition to that, they have the ability to start rebuilding their name so that they can have the opportunity to increase their beacon score accordingly in order to be seen in a different light turn the eyes of lenders and bankers. They function much like conventional credit cards except for the fact that you are not working with the funding that comes from someone else, it is your own.

Of course, the individual consumer will have to amass the funds required for the spending limits that they have, and they will also have to respect the rules involved in order to be able to maximize their potential for rebuilding their credit history.  For example, never surpass the 30% mark of your overall credit that is available to you. By following this tip and others, you will be able to return to a life time of low interest rate opportunities with regards to loans of all kinds.

This product should not be taken lightly because it is ultimately getting your foot in the door to enjoy the privileges that come with these lower interest rates that are reserved only for top quality customers. Many banks provide secured credit cards but they are not all created equal. Some of them have higher interest rates where others have monthly fees attached to them, so it is imperative that the individual consumer does his or her own research to find the best one for the given situation.

Remember to read the fine print because there could be some added hidden charges that would only lead to unpleasant surprises. It is important for the consumer to analyze the history in order to come to terms with what cause these problems and try to avoid them from re-occurring in the future.

Be responsible with every purchase and avoid making purchases that you really cannot afford. Instead, save up until you will be able to pay off your balance at the end of each month. Most people who have been blacklisted understand just how difficult it is to live without a strong credit profile, especially with difficult economic times that have made acquiring new credit very difficult.

Related Secured Credit Card Articles

• Credit Cards for Poor Credit
• What can you get with your Credit Score?
• Credit Cards for Bad Credit

People apply for these kinds of cards for numerous reasons.  For example you may be self employed and find it difficult to get credit. The reason lenders are often hesitant is that you don’t have a consistent paycheck like they can get from someone who has a guaranteed income from their salary at the end of the week or the month.  For other people it may simply be the case that they have had problems with debt in the past.  Having maxed out with other lenders they may have then tried to deal with that problem by taking out another loan.  This then unfortunately creates a cycle where people try to deal with one form of debt by paying off with another form of debt.

The problem with this approach is that eventually you may find it a lot harder to loan any capital from any lender.  While credit cards for poor credit may have higher interest rates than regular, unsecured credit cards, you are also more likely to accepted when you apply for a secured credit card. If possible you should check with a debt consolidation company to see if you can consolidate your debts into one source rather than having to pay off numerous lenders every month.

Before you apply you need to carefully consider all of your options.  It is often a topic which people find difficult and embarrassing to discuss, however, there are debt helplines, financial advisers and other forms of financial advice available that exist to help you look at all the options available to you as a consumer. Some people panic and run to loan sharks, without realizing they are both illegal and can charge enormous interest rates, far beyond that of the original loan.

One benefit of credit cards for poor credit is that they often help you restore your credit score over a long period of time. It is important to check with the lender to learn how this works and how long it will take in order to improve your rating (we’ve round the average is 3-6 months).  The reason that this is important is that a bad rating can have big consequences in the long term and end up costing you thousands.  A low credit score can make it harder to get a mortgage when you want to buy a house.  If you need to travel to work and your car breaks down you may find it more difficult to pay the repairs or buy a new vehicle when you credit score is found to be too low to be able to apply for the loan.

This is why it is important to carefully check all small print and details before you apply.  Always read the terms and conditions.  The biggest detail to be aware of is how much you’re allowed to spend every month and the percentage of interest on the repayment.  Never look at the minimum amount and simply pay off the card in full as soon as your bill is posted.  You should also look at the very least to try and pay more to reduce the interest in the longer term.

Ideally you should also pay off the amount on the card each month.  However we understand that this is not always possible, especially if you have other debts to take care of.  You should be aware that if you do not keep up monthly repayments it can have serious consequences on your rating.  It’s very easy to get into a situation where the amount of interest and penalties can exceed the maximum you’re allowed to spend for the month.

In some cases you may have no other choice other than to get a secured card.  The bank you apply with may ask for a minimum amount as a deposit. This acts as a form of insurance for the lender in case you default on your debts. If anything does go wrong they will at least have some form of payment.

Always check the agreement with the lender as different lenders have different rules when it comes to claiming security deposits. Some will claim them if you miss one repayment while others may wait 5 to 6 months. If you are not sure ask before signing an agreement.

In short when looking for credit cards for poor credit you should not think that you have to accept the first thing that is offered to you. There is a wide array of information available, both in terms of price comparison sites to show you the best deals and personal advice that is more geared to your own individual circumstances. With a smart approach you find a great deal on a secured credit card and break the cycle of debt.

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780 Credit Score and Higher

When you get into the high 700’s (780 or higher) you’re going to be a prime customer for any lender.  This means you’ll get the lowest interest rates available and loan officers will be vying to get you to use their bank for your loan.  You’re considered  to have an “A” credit rating.  There really isn’t any point in attempting to get a higher than 780 unless you consider your number a bragging right among your friends.

720 – 779 Credit Score

A 720-779 credit score is considered to be excellent.  Most lenders will drop a few points on your mortgage loan which can save you thousands of dollars on a 30 year mortgage. You’ll be able to qualify for most car loans or business loans along with in-store credit cards.

700 – 719 Credit Score

If you’re in the 700-710 credit score range then you’ll most likely be eligible for any loan you apply for.  You will, however, be paying a bit higher interest rate than those with a 720+ credit score.  This can mean you’ll be approved for at 4.9% interest rate rather than a 4.2%.  We recommend spending a little more time on your credit to get your score above a 720.  In the end it will be worth it to get the 4.2% interest rate as it will save you thousands at the end of your 30 year mortgage.  In this range you are likely to approved for in-store credit cards or home improvement loans.

650 – 699 Credit Score

This is considered a “good” credit score.  You may be approved for a loan that you apply for but you’ll be paying higher interest rates.  You may find it more difficult to apply for large loans such as a mortgage loan or refinance.  In most cases this score is still good enough to get an in-store credit card or a gas card so you can make payments and improve your credit score.

600 – 649 Credit Score

With a 600-649 credit score you’re still not in the “poor” category but you’ll end up paying high interest rates on any loan you apply for at a bank.  Many lenders will not allow you to apply for a mortgage at this rate without a co-signer or putting at least 20% down on your home.  If you’re at this score because of a lack of credit history then we recommend you apply for an in-store credit card and make timely payments in full for a period of 6 months.

500 – 599 Credit Score

With a 500-599 credit score your best bet is to put in a secured credit card application and get a secured card to help you build your credit.  After 6 months of positive use including paying your balance off as soon as its posted, keeping your balance below 30% of your max and keeping a close eye on usage, you can usually get yourself out the danger zone of a sub 500 credit score.

Sub 500 Credit Score

If you’re credit score is below a 500 then there are some serious problems with your credit.  You’ll most likely be denied for home loans, vehicle loans and even in-store credit cards.  You can apply for a secured loan at your local bank which will allow you got get out of the danger zone of a sub 500 credit score.  Once you show good payment on your secured loan you can apply for a secured credit card to boost your score even more.

Begin Increasing your Credit Score Today

With a little work and a few handy tools from banks, you can raise your credit score to become a prime borrower for even the most picky banks.  Time and patience is the most important factor in repairing poor credit so get started today.

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• Credit Cards for Poor Credit

People with poor credit can seek assistance in a number of ways in the form of bankruptcy, credit counseling, or simply paying all their debt over time.  Secured credit cards for bad credit can be the best option for people with low credit scores.  These credit cards will help them improve their credit ratings and get rid of any bad debt they may have accumulated.   The credit reporting companies want to see that you’re once again a trustworthy payee and once you prove this to them they’ll begin to improve your score.

What Is A Secured Credit Card?

Many banks realize that not every one of their customers is going to have the ideal credit score to be enrolled in their premium credit card programs.  In order to not exclude these customers from their banking services, many banking institutions began offering special high interest credit cards designed to allow the customer to prove to the banks that they can be a great customer.

A secured credit card is a bit different from a standard credit card. To obtain one, you need to deposit a certain amount of money as a security in a savings account. This amount can be equal to or less than the credit limit you receive with the secured credit card depending on which company you choose to apply through.

Secured credit cards for bad credit are best for improving credit ratings, but have a disadvantage that there are a number of fees associated with them. Application fees, processing fees, annual fees, and other fees are sometimes piled on by the credit card companies. However, if you shop around, you can avoid secured credit cards that charge a high amount of fees.

How to Make Proper Use of Secured Credit Cards for Bad Credit

Secured credit cards are the ideal option for people with bad credit to help improve their credit score. People may face bad credit when they are either late on their bills or can’t pay their bill at all.  However , getting a secured credit card for bad credit can be an excellent idea to get your finances back on track. When you use a secured credit card responsibly and make your payments regularly, it can help tremendously in improving your credit.

In order to take complete advantage of secured credit cards for bad credit, you should inform to the three major credit bureaus that you now own a credit card. This will ensure that these credit agencies monitor your credit card use and payment. When you make payments regularly, you will be found to be financially responsible, and this will help improve credit rating.

Once you know that your new secured card is being reported to the agencies, there are a few tricks you can use to be sure your payments are timely.   Many card companies offer online reporting of your activities so that you can log in and see when payments are posted and even make a payment online directly from your bank account.  In addition, many of the banks offer services such as e-mail notification when a payment due date is coming up and even text messaging to be sure you never miss a payment.

Bonus Tip:  Many cell phone companies offer a text messaging service via an e-mail address such as 555-555-5555@vtext.com.  By using this address as your notification e-mail address in your account your cell phone will be buzzed anytime your bill is coming due.

Get a Secured Credit Card for Bad Credit Today!

When you are approved for a secured credit card, remember that you have to use it responsibly to help improve your credit. You should cut down on unnecessary expenses and never spend beyond your credit limit. You should always pay your bills on time.

When you are careful about your expenses and regularly pay your bills on time, secured credit cards for bad credit can substantially improve your credit rating. With time, you will even be approved for a secured credit card. So if you are facing bad credit, get yourself a secured credit card and try to improve your credit score by using it responsibly.

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After you do your homework and choose a secured credit card, it’s imperative to use it responsibly by not spending beyond the credit limit and by paying the bill on time. In this way, you can easily improve your credit ratings by being consistent and diligent about keeping track of your bill.

Applying for instant approval credit cards is a very simple and extremely quick process. Almost every credit card company offers these types of secured cards but it is worthwhile to examine what each card company offers and compare it with your requirements to find the best secured card to repair your credit history. Once you are approved and make your deposit, you get your secured credit card in five to seven working days through the mail.

What are Instant Approval Credit Cards?

If you have a strong credit rating, you can apply for almost any credit card and be most likely be approved very quickly. However, it becomes difficult to get a credit card when you have a lousy credit history regardless of whether you damaged your credit history in the past or if you simply have no credit. The good news is that even with a poor credit rating, you can still apply and be approved for any instant approval credit cards.

You should be aware that although these credit cards are easy to get, they require a security cash deposit. How much you put down on your secured card depends on what you desire your limit to be on your card. If you put down $500 on your secured credit card then your limit will also be $500. If you default on your credit card bill payment, the credit card company can tap into your initial deposit and draw from the balance to pay off the amount you owe.

The preferred way to apply for these credit cards is online, as it is an easy and hassle-free process. When applying for instant approval credit cards online, you need to submit your personal data which includes your social security number and your current address. The system then prepares a credit report from the information provided and decides whether or not to give you the credit card. In most cases, you get an instant response regarding your application and most candidates are approved even when you have a sub 550 credit score.

Things to Consider When Applying for Instant Approval Credit Cards

The interest rate offered on secured cards will vary depending on which company your apply through. You are almost certain to be approved for these credit cards, but your annual percentage rate (APR) will most likely depend on how low or high your actual score ranks at. Before applying for instant approval credit cards, you should always check your credit score. We’ve personally found that it’s easier to get accepted by those cards that require an application fee. Companies that forgo the application fee tend to be a bit pickier when you start getting into scores that are less than 500.
If there are any errors or items in your credit report that you feel you can contest, you should notify the bureau who issued your report. You can send them a letter of dispute and ask for corrections. A credit score with an improvement of just a few points can have an immense impact on your APR.

Read Terms and Conditions Carefully

The most important thing you can do to help yourself is carefully reading all terms and conditions before signing any secured credit card contract. Before applying for a credit card, whether it’s secured or unsecured, you need to carefully analyze factors like interest rates, and APR’s, balance transfer fees, and cash advances. Never apply with multiple credit card companies just to get approved, as this may further damage your credit history. Each time you sign up for instant approval credit cards, your actions are reported to the credit bureaus. Numerous applications may flag you as a potential credit risk so space your applications out over a 1-2 month period to avoid raising any red flags.

Don’t Procrastinate; Sign up for Instant Approval Credit Cards Today!

If you’ve been putting off applying for a secured credit card, stop procrastinating and get started today. It only takes a minute and more than likely you’ll be instantly approve and have a credit card in your hand within a couple weeks. If you have bad credit then you know there are very few options available to you to get back up into the excellent credit range. If you use instant approval credit cards properly and make on-time payments, you’ll be well on your way to a perfect credit score in no time.

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You can obtain a new credit card despite having a bad credit history: a secured credit card. Before applying for credit cards for poor credit, you need to know a few key points. If you have an adverse credit rating, this article will give you some critical tips to remember before applying for a credit card.

1. Review The Interest Rate Offered

Many credit card companies use a trick where they offer a low introductory interest rate on the credit card, giving customers the impression that they are getting a fantastic deal. Most credit card companies offer such low initial interest rates for a set period of time, and then increase them to a much higher rate.

Many customers apply for these credit cards because they receive a low interest rate. They don’t realize that the rate only applies to only the first few months before it is increased substantially. So it is necessary to understand all of the terms and conditions for the credit card carefully before applying for it.

2. Beware Of Scams

You must do some research to find a reputable credit card with a great deal. You should be careful to avoid being trapped by any scams. Some scammers will promise you a fantastic deal on your credit card, but in reality are only interested in getting hold of sensitive personal information in order to steal your identity.

Many credit card companies attempt to deceive customers. They may offer credit cards for poor credit and then charge hefty fees to the credit card holder—even before the customer has started to use the credit card.

3. Compare Different Types Of Credit Cards for Poor Credit

Credit cards for poor credit are now offered by almost all credit card companies, but if you want to get a decent credit card with the best deal it is essential to compare different credit cards that are available. Aside from comparing features and interest rates of various credit cards, it is important to find one that best suits your needs.

Many people end up paying high credit card bills, because they didn’t take the time to find out whether or not the credit card was right for their needs. Try to find the credit card with the highest credit limit amount and the lowest interest rate. Again, read all terms and conditions very carefully.

There are several options available when you search for credit cards for poor credit. You just need to find the credit card with the best features and one that is ideal for your requirements. You should compare all credit cards available from different credit card companies. By doing this, you can avoid getting a credit card which requires you to pay a giant credit card bill each month and has features that are useless to you.

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Best Secured Credit Card Criteria

How to we determine what the best secured credit cards are?  We have several criteria ranging from annual fee amount, sign-up fees to interest rates.  Let’s get into more detail of our criteria for choosing the best secured credit cards.

• Application Fees – Many secured cards have an initial sign up fee which is processed when you turn in your application.  Most are nominal at less than 10 dollars but you can also find many cards that are absolutely free.  In our 2011 survey of best credit cards we found that most cards with no application fee tend to be a bit more difficult to apply for if your credit is extremely low (below 500)
• Yearly Fees – Most secured credit cards have an annual fee associated with them to cover maintenance and service.  Yearly fees can be very varied and range from $25/year to over $100.  Make sure you read the fine print on your secured credit card application to figure out if maintenance fees are monthly or yearly.
• Interest Rate – While you’re not likely to get a great deal on your interest rate with a secured credit card, they do vary from card to card.  If you’re really concerned about your interest rate then you shouldn’t consider getting a secured card.  You really need to be paying off your secured credit card each month and keep a zero balance on your card.  If you’re late on a few payments you can hurt end up owing more than your balance allows and hurt your credit even further.
• Credit Line – Each secured card has a different credit line amount you’re allowed which is determined through your initial deposit.  Some cards are as low as $500 and some are as much as $3,000 or more.  Plan accordingly by determining how often you plan on using your card and what you’ll use it for.
• Credit Bureau Reporting – The point of getting a secured credit card is to rebuild your credit so why bother with a secured credit card that doesn’t report to the major credit card companies?  All the cards we reviews in our Best Secured Credit Cards of 2011 report to the 3 major credit bureaus.
• Other Fees – We’ll also examine hidden fees such as balance transfers and limit increases.  These fees can add up quickly over time so it’s important to pay careful attention to extra fees.

With all those items taken into consideration let’s get right into our report of the best secured credit cards for 2011.

SecuredCreditCardRx.com’s Best Secured Credit Cards for 2011

#1 – Capital One® Secured MasterCard® Credit Card

Capital one has been a leader in secured credit cards for over a decade.  They’re very lenient with who they accept into their program and offer very attractive incentives in signing up for a secured card.

Name: Capital One® Secured MasterCard® Credit Card
Application Fees: None
Balance Transfer Fees: None
Annual Fee: $29
Min Initial Deposit: $49 – $200 depending on your credit score
Max Credit Limit: $3000
APR: 22.9%
Credit Bureau Reporting: Experian, Equifax, Transunion
Notable Extra Fees: None

Exlusive! Read our Full Capital One Secured Credit Card Review

#2 – Applied Bank® Secured Visa® Credit Card

The Applied Bank® Secured Visa® Card made it to number 2 because the card has no application fees, a very low interest rate for a secured card and there is no credit check run when you apply making the card very easy to get even with dismal credit.

Name: Applied Bank® Secured Visa® Credit Card
Application Fees: None
Balance Transfer Fees: None
Annual Fee: $50 first year then $9.95/mo ($119.40/yr)
Min Deposit: $200
Max Credit Limit: $5000
APR: 9.99%
Credit Bureau Reporting: Experian, Equifax, Transunion
Notable Extra Fees: $100 every time you increase your limit

#3 – Citi® Secured MasterCard® Credit Card

We liked the Citi® Secured Credit Card because of the reasonable interest rate and the fact that they upgrade you to an unsecured credit card after 18 months of activity as long as you stay in good standing.  We also like that your deposit grows interest in your savings account – a feature not found from many secured credit cards.

Name: Citi® Secured MasterCard® Credit Card
Application Fees: None
Balance Transfer Fees: 3% of balance
Annual Fee: $29/yr
Min Deposit: $200
Max Credit Limit: $5000
APR: 18.24%
Credit Bureau Reporting: Experian, Equifax, Transunion
Notable Extra Fees: None

Which of our Best Secured Credit Cards for 2011 is Right for You?

The answer to this question will vary from person to person and you need to ask yourself what you plan on doing with your card.  Will you be carrying a balance on your card each month?  Then choose a card with the lowest interest rate.  Are you going to be paying you balance off each month?  Then choose a secured card with the lowest yearly fees.  Before you make you decision be sure to do your own homework and read all the terms and conditions before you fill out an application for any of the cards on our list of best secured credit cards for 2011.  If you make your decision wisely and are diligent about paying your card off every month then you’ll be on your way to great credit in no time.

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