Get Secured Credit Cards for Bad Credit or No Credit

Secured credit cards offer a chance for people with a bad credit history, or even no credit history to get credit cards just like those people with great credit scores. And they are also a way to manage your credit card spending.

Continuing a series of Personal Finance articles, the information here will help you evaluate the best secured credit card offers to match your lifestyle. Even if you are new to the credit world and don't have any credit history there are still credit card companies with offers and programs that will allow you to get a credit card too.

If you have a bad credit history you can still get major-brand credit cards! Even if other credit card companies have rejected you, there are still secured credit card offers that will fit your lifestyle. And some of the best secured credit card offers will even help you rebuild your credit score and manage your credit card spending.

Your credit history and credit score will impact every major part of your life, but it seems like a vicious circle if you have no credit history or some bad debt that has caused you to have a bad credit score. You need credit to fix the problem, but you can't get credit because of the problem.

Credit card companies have recognized this and offer programs that provide credit cards for bad credit that will help you get back on track to control your personal finance and rebuild your credit history.

Commonly known as secured credit cards, or bank-secured credit cards, these major-brand cards, (like Visa and Mastercharge), require you to make a security deposit in return for issuing you a secured credit card with a spending limit that matches your initial deposit.

Secured credit cards are similar to prepaid credit cards - only better. Prepaid credit cards are always restricted to the amount of money you put on them, and don't always report to all the credit reporting agencies. Merchants also view prepaid credit cards the same as bank debit cards.

Secured credit card offers vary, but the basics are that you make a deposit with the issuing company that is placed in a savings account in your name. These deposits are, (generally), refundable if you change your mind or want to cancel.

Some of the secured credit card companies will even increase your credit limit beyond your initial deposit once you have an established history of on-time payments.

Most secured credit card offers do have an annual fee, so make sure you check for the lowest fee that still has all the benefits. Orchard Bank is a big player in the secured credit card market with several different cards to offer. Capitol One also offers secured cards, and usually has lower fees than Orchard bank.

When you apply for a secured credit card, look for these features:

• Low, (or no), annual fee
• No transaction processing fees
• Reports to ALL 3 credit reporting agencies
• Possible credit limit increase with on-time payment track record (with no deposit increase)
• Issued by a well-known bank! (Not some new off-shore bank you never heard of that may not be there next week)
• No checking account required
  

Caveat: You know what to look for - be sure to check the details!

Here are a couple resource links to websites that offer secured credit card applications, but remember to check the details - these websites have a vested interest in getting you to apply through them.

• Capital One Secured Credit Card - A major card issuer you can trust - just be sure you read the fine print. Usually has the lowest fees.
• Orchard Bank - probably the biggest player with the most secured credit card offers. A reliable card issuer, but be sure to check all the fees. They usually have more fees than Capital One

This is a list of several other secured credit card applications from creditcards.com

• Creditcards.com secured credit card issuers