A secured credit card can be the most powerful tool in your arsenal in eliminating your poor credit score but you may not be sure where to get started. Getting a secured credit card is a very simple and straightforward process and most secured credit cards are instant approval so you don’t need to wait around to be approved. Before you answer the question of how to get a secured credit card, we recommend asking yourself the following questions.
What is your desired maximum spending limit you’d like on your secured credit card?
The amount you deposit onto your secured credit card also acts as the maximum you can spend on your card. You have to make sure you have enough saved up to initially deposit between $250 and $500 (or whatever your desired maximum is) Some companies require 100% of the maximum to be deposited where others require 50% so be sure to check the terms and conditions before you sign up.
How good are you at making on-time payments?
A secured credit card is a tool for building your credit, not a tool to buy items that you don’t have enough cash on hand to purchase. If you overextend yourself on your monthly payments then you’ll be right back where you started from and in even more of a mess. Keep in mind that interest rates are usually twice that of regular credit cards and if you get behind on your payments your interest and penalties can easily outweigh your initial deposit
What is the interest rate on the card you’re applying for?
Currently, secured cards are around 18%-22% interest rate. If you get late on a few payments and accrue interest on your payments the total amount you’ll owe can add up very fast. There’s no way to get around paying a higher interest rate on your secured credit card so just keep the high interest rate in the back of your mind as a reminder that you need to make full, timely payments in order to keep in good standing.
What will you be using your card for each month?
It’s always good to have a plan of action in place before you answer the question of how to get a secured credit card. We recommend using your card for your monthly vehicle gas expenditures as it’s a consistent and easily tracked method to build your credit history. If you don’t have a vehicle you can use bills such as your Internet/Cable, Gas or other bills that don’t have wild fluctuations on a month to month basis.
Now that you’ve considered the questions before you answer how to get a secured card, let’s take a look at how you actually go about getting one.
How to get a Secured Credit Card Online
The easiest and fastest way to sign up for a secured card is online. Many large banks such as Wells Fargo and Capital One have websites dedicated to helping you with the sign up process. Here are few items you’ll need handy:
- Your Social Security Number
- Your Bank Account Number
- Your Bank Routing Number
- Your Deposit in Liquid Form so you can Deposit from your Bank Account
Once you have all those items in front of you, you can click on the card you desire right here on SecuredCreditCardRx.com or you may go to the company’s main website to sign up. The sign up process usually only takes 5-10 minutes and you’ll receive an instant approval notice and a notification that your secured credit card is in the mail. We’ve found that from the time you sign up to the time you get your card is normally around 7-12 business days.
How to get a Secured Credit Card at your Local Bank
You’ll need the same items listed above and you’ll also need a form of identification such as a license or military ID. First visit your bank’s website to see if they offer secured credit card and print out their agreement so you can look over interest rates, sign up fees and other terms before you sit down with someone. Call to set up a meeting with a credit card representative and they’ll guide you through the process.
Don’t Hesitate, Get a Secured Card Today!
Now that you know how to get a secured credit card all you have left to do is to go online or to your local bank and sign up for a card today. Don’t wait, your credit score is extremely important for all of life’s big decisions and a secured card is your best asset to a 700+ credit score.
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