If your application for a secured credit card is rejected, discover out why you were denied (you have the right to know) and explore your options for building a amend credit history.

Because while secured credit cards — which require a greenbacks deposit as collateral for your account — are a bang-up pick for those who take bad or nonexistent credit, you're not guaranteed approval. The lender might have concerns about your income or your ability to pay bills on time, or might ding you for filing for bankruptcy in the by.

  1. Discover Out Why You lot Were Denied a Secured Credit Carte du jour
  2. Place Other Means to Build Credit History
See If You're Pre-Approved Before You Apply. There's no impact to your credit. Check Now

i. Find Out Why Y'all Were Denied a Secured Credit Menu

You lot have the right to know if data in your credit report prevented you lot from being granted credit, insurance or employment. If yous employ for a secured credit card (or any credit card) and are turned down, the credit card issuer will provide you with a letter of the alphabet explaining why your application was declined.

If something on your credit report led to a rejection, carefully look over your report for errors. You are entitled to ane free credit report per year from each of the 3 major credit bureaus. If you see any incorrect information, dispute the errors.

ii. Place Other Ways to Build Credit History

Typically, a credit carte du jour company's reasons for rejecting your awarding aren't based in error — so y'all'll need to detect another style to build up your credit history. Y'all accept a few options.

Credit unions may offer several credit-building services. Share-secured loans role like secured credit cards (you deposit money into a savings account and borrow against that coin), while credit-builder loans are small loans that you tin pay back in timely installments. Both options may help build your credit history.

If your parent, spouse or partner is a responsible user of credit cards, they could assist you build your ain credit history. They can add y'all as an authorized user of one of their credit cards, and the creditor volition report on yous both to the credit bureaus.

The catch? Your actions will affect each other. If the cardholder pays tardily, maxes out her card or racks upward debt, it makes you look bad because that negative credit history may exist reported to your credit report. As well, if yous do those things, it negatively affects the cardholder'southward credit. And the cardholder (not y'all) is responsible for whatever debt accumulated. So exist conscientious with this route. Poor credit management could ruin two people'south credit — and it could hurt your relationship.

All promise is not lost if your application for a secured credit card is rejected. Make sure your credit report is error-complimentary, and explore the other options to boost your credit score. Over fourth dimension, you could put yourself in a better position to re-employ for a secured credit card.

See If You're Pre-Approved Before You Apply. There's no impact to your credit. Check Now