Posts Tagged secured credit cards

With the current economic climate, it’s obviously going to be harder to get a credit card.  Creditors know, after all, that with rampant layoffs and financial problems, people are going to find it harder to settle money that they owe.

One surprising trend that people are finding out now is that it’s getting harder to get approved even for a secured credit card.  Yes, those same cards that claim “guaranteed approval” and require you to deposit money equivalent to your line of credit are starting to disapprove more and more applicants.

I’m not sure of their reasons but one thing is for certain: a lot more people are reporting it.  Getting denied for a secured credit card is nothing new, of course.  Many large banks (like Bank Of America, for instance) has routinely denied many secured credit card applications over the years.  However, even smaller issuers like Orchard and Applied, have increasingly been doing the same.

If you’ve been denied a secured credit card, chances are there are some really bad marks on your credit report that are flagging you a high-risk individual.  If you have recently been recovering from a bankruptcy, for instance, the chances of getting even a secured credit card in the current economic climate is very slim.

Your best bet, if you are in this situation, is to try and find ways to improve your current credit report (challenging even the smallest error you can find) as well as to seek other avenues of credit that can help build up your score.

If you’ve got bad credit and can’t get approved for any credit card application you file, it might be time to hold off from applying to regular credit cards at the moment. Most likely, you’ll need to bring your credit rating back up before qualifying for some of those credit cards with awesome deals.

While most of the cards available to people in your boat will be incredibly high-interest with a generous serving of fees, there’s at least one that will treat you a little better than the rest. Sure, it’s a sub-prime card, but not a terrible one.

The Orchard Bank Classic Secured MasterCard is a great credit card for people who don’t have a good credit score. Keep in mind that HSBC owns and operates Orchard Bank so this sub-prime card, unlike many offerings in its class, has the backing of a large and reputable institution behind it. Unlike other “bad credit” options, Orchard Bank can actually give you one of four different cards - the less unsavory your credit looks like, the better deal you will get.

If your credit rating is really terrible, non-existent or you’ve just recently filed bankruptcy, the secured MasterCard will be the best you can get. Don’t think you’re settling for the short string though. This is one of the best secured credit cards you can find on offer today.

Annual fee is very reasonable ranging from $0 to $48 depending on their assessment of your credit risk. There’s also no application fee, a common feature on most sub-prime cards. You can get a credit limit equal to whatever amount you deposit - anywhere from $200 to $15,000. APR is a reasonable 8.9 % to 14.9 %, pretty good considering the circumstances. Even better, the Orchard Bank Classic MasterCard is a great card to have once you’re starting to build your credit back up.