Bad Credit? No Credit? Best Secured Credit Cards

What is a Secured Credit Card?

A secured credit card functions just like a regular credit card. You can make all the purchases you would normally make with an unsecured credit card with a secured credit card, from buying groceries, pumping gas, paying your bills online.

Unlike a regular credit card, the issuer of the secured credit card requires you to leave a deposit or security funds to cover the purchases you make with the credit card.

Who should get a Secured Credit Card?

Secured credit cards are ideal for those with no credit, poor/bad credit, or even average credit looking to establish or improve their credit profile, and score.

If you are being denied for unsecured credit cards (visa, master card, American Express or loans) due to no/new or poor credit, secured credit cards may be just for you. Secured credit cards will give you the ability to improve your credit profile, and increase the chances of approval in 6-12 months.

What do I need to get a Secured Credit Card?

  • You will need to provide the deposit or “security” funds for your secured crdit card. In most cases, you will need at least $300.
  • SSN (Social Security Number) or ITIN (Individual Tax Payer Number)

How to close a bank account

There a number of reasons to close your bank account. Whatever the reason might be, here are the 4 ways (easiest/least effort to hardest/most-effort) to close a bank account.

Most banks have an online secure messaging platform you can use within your bank’s online portal. Once you’re logged in, simply send a message requesting the closure of your bank account.

By Phone
If you are not a fan submitting secured messages online, and want to talk to a live person, you can call the customer service link and submit a request to close your account.

By Mail
If you don’t like technology or people, you can submit a signed request on paper requesting your account to be closed.

In Branch
If you like to deal with people face to face, you can visit a branch and request the account be closed in person. You’re limited to their branch hours, and possible wait times at the bank.

American Express 61 day rule

The unofficial “61 day” rule from American Express is a widely discussed topic on credit forums and blogs.

A new American Express applicant can request a 3X limit increase 61 days from the day the account was opened.

Example: If you opened an account with AMEX on Jan 1 with a $5000 limit, on March 3rd (Jan 1 + 61 days), you can call in and request a credit limit of upto $15,000.  Whether you get approved or not be determined by your credit worthiness, personal income and other credit factors. But if you are eligible, you will be approved for the $15,000 limit.

Chase 5/24 rule

When applying for credit products with CHASE, whether it is a personal credit card or a small business credit card with a personal guarantee, you need to be aware of a hard criteria they have in place for all applicants.

The 5/24 or 5 new credit accounts in 24 month
If you have opened 5 new credit products (credit cards, loans or any other credit product with ANY company) within the last 24 days, Chase will automatically deny your new credit application every single time. (If you have more than $250,000 in assets with Chase Bank, they have been known to exceptions).

Most creditors look at risk when extending credit to applicants. If you are applying for many new credit products in a short period of time, it raises red flags. They start to question your ability to pay back all this outstanding credit to the lender.

All lenders have an internal rule they follow, but not all of them are as publicized and well known as the Chase “5/24” rule. Chase hasn’t released any official public document stating the 5/24 rule, but it’s widely theorized and proven to be true by many credit applicants with Chase.