What You Can Expect To See On Secured Credit Card Applications

Secured credit card applications are not much different than regular applications. When you apply for a any type of secured credit card, it’s important to read the details about the account you are opening.

Sometimes a secured credit card application will require a fee paid upfront to the lender, an application fee. This type of card isn’t the best deal for any consumer. If you run across this type of application, try searching for an alternative. Many cards charge a monthly fee, yearly fee and a processing fee. While they may seem like a good alternative at the time, you can find better terms even if you have bad credit.

Credit cards are needed in many different situations. They’re a dependable form of emergency currency, but how are they a better choice than a savings account or other emergency cash fund? A secured credit card can rebuild your credit, while a savings account cannot. A secured credit card can be used over the internet to help a family member, or over the phone to pay a bill in an emergency. Cash transactions often cost more these days than just putting the amount on a credit card.

The secured credit card application is not much different than unsecured card applications. They will usually require a picture i.d. and name, social security number (or government number) and a check, if you’re planning to get one of the cards mentioned above (which require a fee upfront for processing). Some credit card applications will require proof of income, so be prepared with a check stub.

Secured cards are great for anyone who wants to rebuild credit or establish good credit. They are a perfect opportunity to get your credit back on track and later apply for an unsecured card. If you are ineligible for a secured card, there are a couple of steps you can follow in order to get your credit back on track.
The number one factor that is important when you get declined is time. You need time to distance any past due payments, judgments or collections. Time helps establish your residence and job for longer periods. The longer you’re in a residence and job, the better your creditors see you; i.e. you’re a less risky borrower. However, if something on your credit is still open, it’s crucial to get your credit reports.

What one would look for on a credit report is any recent (within 6 months) past due, missed payments, judgments or collections. These are the largest scoring factor on your FICO score. They account for 35% of your score. The other 30% is any open accounts you have. What balances you have on those accounts. If you have many accounts with low limits or loan amounts, close them a.s.a.p. It’s better to have one card with a $1000 balance and $5000 limit than to have a $500 balance on a $500 card.

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