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Secured Credit Card

Another method that can be used to establish your credit history is the use of a secured card. How does this work? Typically you would open a savings account with someone who is offering this type of card. Once the savings account is established (sometimes with as low as $100.00), you are issued a normal credit card that can be used up to the amount you have in the savings account.

Note that with a secured credit card, interest is charged just as with any other card even though payment is actually guaranteed to the credit grantor through your savings.

Once you have obtained a secured credit card:

1. Create a debt on the new card.

2. Wait until the first bill comes and pay the bill off in full (or make payments until paid off).

3. Repeat this process until you have a well-established credit history.







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