Quote:
Originally posted by guinnessgurl
How do I get a secured credit card?
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I would contact a local bank or credit union to see if they offer them. Most Do, although if you are unable to find one that offers one, there are many that you can find online. Basically, what happens is this:
You take $X and put it into an account at that institution, and they freeze the funds. Basically, that means that you can't withdraw them as long as that credit card is open. You will, however, earn interest on it. In return, they give ou a credit card for $X - usually regardless of credit, as they don't have anything to lose. If you neglect to make your payments, they simply can take it out of the frozen funds at the institution.
Secured cards, however, generally report to the Credit Reporting Agencies as typical credit cards, they are just easier to qualify for.
Once you have a semi-established history with that secured credit card (usually six months or longer) you can probably re-apply for that some card and get your funds returned to you. If you are comfortable with them just earning interest, you can obviously keep the credit card if you like.