Apply for a Secure Credit Card

A secured credit card requires you to make a cash deposit as collateral in order to use the card. 

The deposit amount usually serves as your credit limit. 

If you fail to make payments on the secured credit card, the issuer can use the deposit to cover any outstanding debt.  However this will kill your credit score.

Important Note on Your Secured Credit Card.

If you miss a payment on your Secure Credit Card and the credit card company has to take the money from your deposit to make the payment this will be a negative on your credit report.

A secured credit card is a good option for those who are trying to build or rebuild their credit. 

By using the card responsibly and making on-time payments, you can demonstrate your creditworthiness to lenders and improve your credit score over time.

To apply for a secured credit card, you will typically need to:

1. Research different secured credit card options and compare their fees, interest rates, and other terms.  

2. From my Research the one of the best Secure Credit cards as of February 2023 is the Discover Card.  Self.com offers one of the better Secure Cards also.

3. Apply for the regular Discover credit card and if you are turned down they will offer you a Secured Discover Card.  They will not charge you a monthly or annual fee for the card and will actually give you 1% back on your purchases with the card. 

4. Most of the Secure Credit Cards will have a monthly or initial fee along with the security deposit.  When you develop good credit you will not have to deal with these fees.

Once you receive your secured credit card, be sure to use it responsibly by making timely payments and keeping your credit utilization low. 

In six months to a year you may be able to transition this card to an unsecured credit card.  When this happens you will get your initial deposit back.

Creating a Credit Card Financial Disaster

If you are not paying off your credit card every month you have been overspending.  Credit cards charge a very high interest rate. If you don’t pay off the card one month, the next month is even tougher.   

• It all started with the new $500 BBQ that you bought for the summer party that you did not pay off the month you charged it.   

• You told yourself you would pay it off over the next couple of months.  

• However you just put it off.  

• Then the card company increases your credit limit.  

• Next you buy new tires and wheels for your car.  

• Your balance just keeps growing.  

The problem for many people is it gets worse and worse.  

The Simple Solution is to pay off your cards every month.  

Do not finance consumer spending with credit.