Secured credit cards are made for 2 types of clients:
These with thin or nonexistent credit histories – folks looking to create credit for the first time. Those with sub-par credit points attributable to adverse credit events or benign neglect – folks trying to make credit.
Qualify for a Secured Credit Card?
A secured credit card has much looser underwriting standards than most unsecured cards, particularly premium money back credit cards and travel awards credit cards with generous rewards programs, wide lists of value-added perks, and advanced spending limits.
No-Credit-Check Secured Credit Cards
A few secured credit cards need no credit check in any respect. If they will scratch up the minimum needed security deposit, candidates are guaranteed approval. The catch is that no-credit-check secured cards tend to own higher annual fees, high APRs, restrictive terms, and no clear path to unsecured status.
Traditional Secured Credit Cards
Most secured credit cards do need a credit check. Precise FICO score needs vary, however it’s not possible that you’ll qualify with a score below five hundred. FICO scores between five hundred and 560 are iffy – some issuers would possibly bite, some may not, and it might come down to exculpatory factors, like as an open bank account or housing ratio.
Plenty of issuers that do run credit checks avoid candidates with latest or non-discharged bankruptcies. Unluckily, the one way you will know for sure whether your application is approved is to apply.