No idea how to apply for secured credit card? This is a question that many have. However, know that the step-by-step process for this is very simple and he will learn today how to get your credit card.
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In this guide, we’ll detail how to apply for secured credit card. In addition, you will know all the best credit cards available that are easy to get approved.
Keep reading and find out how to apply for secured credit card and you will find out how a card can help you start building a perfect credit history, which in the future will make you get better opportunities in the market.
After all, what is a secured credit card?
The secured credit card is recommended for those who are new and have never had a good credit card or are negative.
It works like a regular credit card, with the difference that it requires a cash deposit as collateral at the time of account opening.
In practice, it is as if he lent the amount to himself. However, with all the features of a card, being able to make purchases, pay in installments, pay invoices and, most importantly, start showing the market that you are a good payer.
What is needed to get a guaranteed card?
Getting a secured credit card is simpler than it seems and this is its great advantage.
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Even if you have a low credit score or don’t even have a credit history, there are still good chances of approval.
Some administrators even accept candidates with extremely bad records.
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The main point is the security deposit, which starts at $200. And the amount deposited is what defines your credit limit. For example, if you deposit $720.00, your limit will be $720.00.
Step by step to apply for a secured credit card
1. Find out your current score
Before you apply for your secured credit card, we recommend that you find out your credit score.
It is worth taking a simple but essential step: finding out your credit score. With this information in hand, you better understand where you are and what options are really within your reach.
If your Score is between 560 and 669, you may have a chance of approval for an unsecured card. Thus, you will not need to make the initial deposit.
Now, if you are starting from scratch or have a bad history, the guaranteed card is the best alternative.
2. Research the market
If you have decided on a secured credit card, you should do market research to find the best options.
Just like any other financial product, you should research well before making a decision.
Start by evaluating cards that accept your current profile, especially if you have a low score or are negative.
See which ones require a lower deposit, which ones offer better rates, extra benefits or even the possibility of migrating to an unsecured card in the future.
After the step-by-step, we will show you some interesting options that you should consider.
3. Make your application
Once you’ve chosen the guaranteed card that best fits your profile, it’s time to take action.
Go to the card company’s website and start your request online. The process is quick and straightforward, and in most cases receives a response within a few seconds.
To fill out the application, you must have some information at hand, namely:
- Full name;
- Date of birth;
- Social security number (or taxpayer identification number);
- Citizenship status;
- Address;
- Telephone;
- Proof of income;
- Housing costs;
- Level of education and if you have a bank account.
All of this helps the financial institution to assess your profile more accurately.
If the guaranteed card requires a deposit, after approval they will ask you to make the transfer.
Best Guaranteed Credit Cards
1. Capital One Quicksilver Secured Cash Rewards Credit Card
Capital One Quicksilver Secured Cash Rewards is one of the best in the market.
It is a guaranteed card, that is, it requires a security deposit, but it already comes with benefits that only appear on traditional cards.
He requires a deposit, he will have to make a deposit of at least US$ 200.00. Thus, it guarantees an initial line of credit of at least US$ 200.00.
You can still receive cashback. At first, you will receive 1.5% on all day-to-day purchases. You will still receive 5% cash back when booking cars, hotels and ticket purchases on the Capital One website.
The card has no annual fee and no hidden fees, and it also offers fraud protection.
In addition, if you receive your deposit back as a credit on the invoice, you maintain a good usage history.
2. Discover it® Secured Credit Card
The Discover it® Secured Credit Card is an interesting option.
First, to approve the card you must have a score between 300 and 629. It requires a security deposit. The minimum deposit amount is $200.00.
It still does not charge an annual fee and after 7 months of use you can migrate to the card version without warranty.
Above all, you can also receive cashback there, it works as follows:
- 2% cash back at gas stations and partner restaurants.
- 1% on any purchase made.
The regular APR is 27.24%, and the card also offers 10.99% interest on balance transfers for the first 6 months. In this way, it is clear that this is one of the best credit cards for beginners.
3. Self Visa® Credit Card
The Self Visa® Credit Card requires a score between 300 and 607.
In addition, he does not make a credit inquiry and does not take into account his score. It is worth noting that the prior deposit is low, being only US$ 100.00.
Now, if you don’t have the $100 available right away, Self offers the Credit Builder Account. Thus, you can pay the amount in up to 4 installments of US$ 25.00.
In the first 12 months, the annuity is free. After that, it becomes $25 per year.
Conclusion
Now you know the step-by-step guide on how to apply for secured credit card. You still know exactly how this type of card works.
Options such as Capital One, Discover, Self and other cards show that it is possible to start developing your financial history, even if it is new. In addition, it is possible to improve your score even if it is negative.
Therefore, we recommend that you choose the card that best matches your profile, follow the steps presented in this guide and start your financial journey on the right foot.
With consistency, the guaranteed card can be much more than an alternative. This can be the beginning of a healthy financial life full of opportunities.