How does one secure a credit card with a bad credit history?
Advertising Disclosure
Credit-Land.com is an independent, advertising-supported web site. Credit-Land.com 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. Credit-Land.com 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

By
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:

5 Reasons to Get the Capital One Venture Miles Rewards Card

By Herbert Moore, Posted: January 18, 2017

If you’re looking for a great travel rewards credit card—one that offers unlimited earning opportunities, flexible redemption, and lots of perks—look no further. This card from Capital One has you covered. Continue reading

Credit Card Tips For Holiday Shopping 2016

By Herbert Moore, Posted: November 23, 2016

November and December are the busiest months as gift shopping reaches its peak. People rush around looking for the best gifts and the best deals leaving a lot of money in the shops. Holiday season may force you to go over the household ... Continue reading

Credit Cards to Save More on Holiday Shopping

By Herbert Moore, Posted: November 22, 2016

Discounts and special offers are available all year round. Werther you are a bargain hunter or an impulse buyer, make sure you check online discounts and special offers. Also, if you are a cardholder, see if your credit card opens the door ... Continue reading