How does one secure a credit card with a bad credit history?
Advertising Disclosure is an independent, advertising-supported web site. receives compensation from many credit card issuers whose offers appear on our site. Compensation from our advertising partners impacts how and where their products appear on our site, including, for example, the order in which they may appear within review lists. has not reviewed all available credit card offers in the marketplace.
Credit Card Applications » Research » Guides » Building Credit History » How does one secure a credit card with a bad credit history?

How does one secure a credit card with a bad credit history?

Updated: December 26, 2012

Add to Favorites:

Securing a credit card with bad credit, get the credit scores back on track. These secured credit cards are tied to the existing bank accounts and they typically use a portion of the balance in your account as the credit limit. For someone with a low credit score, this could be the only option available to rebuild their credit in an affordable and timely manner. Since the bank account secures your credit, the risk to the lender is considerably low. Secured credit can be obtained irrespective of how bad the credit history has been.

In fact, it is easy to get secured credit, if you have a lot of bad credit information, and yet, it is the best solution to your financial problems. Many people still feel that there are too many negatives in obtaining secured credit, and try to find other alternatives. There are a few drawbacks that you need to be aware of, while applying for secured credit:

  • Finance charges are imposed by many card companies, there are also the interest rates, and other fees as well – all this is being charged on your money.
  • Most card companies do not report to the credit reporting agencies, as a result of this, the credit rating might not go up in spite of you using your card in a responsible manner.
  • They may also mention this as ‘secured credit’ and this will not show dramatic improvements in your credit rating as unsecured credit; which would not work in your favor.

There are also other alternatives to a secured credit. You can always opt for the unsecured credit but this may cost you a bit more and it may be a little difficult to get. The department store credit cards such as the ones offered by JCPenny, Best Buy, Belk, and Sears etc are all unsecured credit cards and are usually much easier to obtain than the normal credit cards. You can apply for these cards in person or online.

There are also unsecured credit cards that are available for those with bad credit history. Here the interest and finance charges are much higher while the credit limit is low. However if the card is used wisely the credit limit may increase.

Add to Favorites:
Get the latest news, articles and expert advice delivered to your inbox. It's FREE.

Related Research:

How to Get Free Wi-Fi in the Air

By Herbert Moore, Posted: September 28, 2016

Sometimes in-flight Wi-Fi is the bare necessity when you travel abroad or within the country. However not all airlines offer free in-flight Wi-Fi. There is only a couple of airlines that will allow you to use Wi-Fi ... Continue reading

Amazon Credit Cards Review

By Allison Martin, Posted: May 30, 2016

When was launched 20 years ago, few could have envisioned how far the company would come. What was once an online specialty bookstore is now an Internet juggernaut that sells nearly anything and has made major inroads into ... Continue reading

How Much Do Shell Cards Really Save on Gas?

By Allison Martin, Posted: April 20, 2016

There is an endless amount of gas cards on the market, and practically every major gas station, including Shell, has options to choose from. In fact, Shell offers two options for gas cards for consumers. Continue reading