Ilango Chokalingam asked: Here are some helpful tips to follow when filling out a secured credit card application.
Tip #1
Know the different types.
Card Types: Traditional/Unsecured Credit Cards
* Requires good to excellent credit rating
* No application fees
* Credit line is determined by your credit rating
Secured Credit Cards
* Mainly for those with poor credit and is made for the purpose of rebuilding poor credit
* Requires a deposit
* Requires your deposit to go into a savings account as collateral
* Credit line is based upon what you deposit into the savings account
Tip #2
Before you complete a secured application run a google search for “secured credit card scams.” There are a lot of scavengers out there waiting to steal your money and identity. If you educate yourself and know what things to watch for before you start to apply for these cards online you can prevent this from happening to you.
Tip#3
Know the requirements before you apply for bank cards online; such as age, income, etc.
Tip #4
Apply on a site that utilizes Secure Sockets Layer (SSL) Technology. Simply put this means that your information is encrypted (cannot be seen by others), authenticated and protected. Card issuers that have been through this process have had their identity verified.
Tip #5
Don’t apply for cards that are out of your league. You do not want to make a mistake of applying for an unsecured card that requires you to have excellent credit if you don’t qualify for it.
Tip#6
Fill out all required information. Do not skip over information. Incomplete applications may be disregarded and deleted from the system.
Tip #7
Be honest. Credit card companies will go through the process of verifying information. Make sure that the information you input into your application is true and correct to reduce the risk of denial.
Questions you want to consider when before you complete a secured application
* Do you report to all three major credit bureaus? (Equifax, Experian and TransUnion)
* The main purpose for applying for a secured credit card is to build your credit history.
* If a credit card issuer does not report to the three major agencies then choosing that card will be defeating the purpose of building credit.
What is a secured credit card anyway?
A card that requires a cash collateral deposit and requires that deposit to be put into a savings account. It will be based upon the amount of money you put into this savings account.
How can a secured card help my credit rating?
When you make a purchase; then pay in full and on time every month it will give you a good credit history.
Are all banks offering secured credit cards?
Not all banks offer these types of cards. It is important that you shop around to see what banks are offering secured credit cards. If you follow these steps when you are ready to complete that application you will increase your chances in being approved for one.
Emma
