Skip to content

Latest commit

 

History

History
56 lines (37 loc) · 2.75 KB

File metadata and controls

56 lines (37 loc) · 2.75 KB

Questions before applying for a secured card

Before you submit an application, ask the issuer (or read its Schumer Box and cardholder agreement) for clear answers. This list is educational — not a script for guaranteed approval.

Reporting and credit-building

  1. Do you report to all three major credit bureaus — Equifax, Experian, and TransUnion?
  2. How often do you report account status — monthly around the statement date?
  3. Is there a minimum time before the account appears on my reports?

Remember: reporting plus on-time payments may help over time, but nothing guarantees a score change.

Deposit and limit

  1. What deposit amounts are allowed, and does deposit equal credit limit?
  2. Can I add to the deposit later to raise my limit?
  3. When is the deposit refunded — at graduation, closure, or another trigger?
  4. What fees come out of the deposit if I miss payments?

Fees and interest

  1. What is the annual fee, if any?
  2. Are there monthly maintenance fees?
  3. What is the purchase APR and penalty APR if I carry a balance?
  4. What are late payment and returned payment fees?

This repo does not compare APRs across issuers — compare disclosures yourself.

Graduation and account lifecycle

  1. Is there a path to an unsecured card after on-time payments? How many months?
  2. What happens to my deposit when I graduate?
  3. Can the issuer close or change terms on short notice under the agreement?

Usability

  1. Is this a Visa, Mastercard, or other network accepted where I shop?
  2. Does the card offer autopay, alerts, and mobile app access?
  3. Are foreign transaction fees relevant for me?

Fit with your goals

  1. Do I actually need a revolving account right now, or would an installment credit-builder loan fit better? (See secured-card-vs-credit-builder-loan.md.)
  2. Can I afford on-time payments and low balances on top of rent and other bills?
  3. Have I pulled my credit reports lately to confirm there are no errors I should dispute first?

After you have answers

Official sources