When looking to rebuild your credit, many people come across a secured credit card.  I’m sure by now, you’ve done some research on the card but there may be some questions that you may have that confuse you.  Don’t worry, you’re not the only one.  I’m going to show you some common questions that many people like you and I have about secured credit cards:

Where can I apply for one?
Website like FINDsecuredcards.com are a great place to look for credit cards that are “secured” only.  What you may find on a lot of other sites is that they will offer more than a secured card, which will tend to confuse the person trying to apply.  It’s best to stick to a site that offers credit cards only designed to rebuild your credit.

What should I look for?
Some companies may try to scam you when it comes down to a secured card.  There are a few things you’re going to want to look for just make sure that they are 100% legitimate:

• Look for a major credit card logo like Visa and MasterCard.
• Make sure that the credit cards report to the 3 major bureaus.
• Check with the BBB to ensure yourself that the companies you’re working with are legitimate.

Do I have to deposit money?
Yes, all secured credit cards will require that you deposit a set amount of money.  This deposit will generally be your credit limit.  If you have to deposit $500, your credit limit will be $500.  If you don’t pay your bill off in time, the credit card company will have that $500 to rely on, so that they don’t get screwed again.  Remember to learn from your mistakes the first time.

Will it help re-build my credit?
Yes.  As long as you apply for a card that reports to the three major credit bureaus, it’s going to report.  If you apply for a credit card that doesn’t report, it won’t make sense to carry it.  Use this card as if it was your first credit card.  Make your payments on time and never miss a payment.  If you can follow these simple techniques, your credit score will sky rocket in no time.

My credit is awful, will I get approved?
As long as you can fund your credit card with the proper amount, you’ll most likely get approved.  Most people are generally under the assumption that it’s like a regular credit card but this isn’t the case.  Credit card companies know that you’re trying to build your credit and as long as you can show them the money for your deposit, they won’t care.

Hopefully by now, you have a better understanding on how a secured card works.  If not, be sure to browse our blog for more information.  If you want to ask more questions, feel free to e-mail me at admin[at]findsecuredcards.com.