Applying for a credit card with no checking account and bad credit is no easy task. Almost all credit card issuers stipulate that you must possess a checking account, and most require average credit. However, a secured line of credit allows you deposit money into a savings account and that serves as collateral for the financial institution that issues you a line of credit. The ease of obtaining secured credit depends on the financial institution.
Apply for secured credit with a local bank. Local banks sometimes provide secured credit to most customers who open a savings account. If you successfully obtain a secured credit card, whatever you deposited into savings is how much you can charge on the card. The money is there securely, and if you don't make your payments on the card, the bank will take it out of the savings account.
Open an account with your credit union. About half the nation's credit unions offer secured credit to their members, according to Bankrate.
Pay your fees on time. If you do not pay the fees associated with your secured credit card, the bank or credit union will take it out of your savings, and you will lose your card.
Do not charge more than 30% of your credit limit. Charging more brings your credit score down.
Pay in full each month. Combining light use of the credit card and full payment prompts your credit score to rise.
Things You'll Need
$100 to $300