Credit Q&A: Secured Card

Q:How can I establish a credit history? I am currently a junior in college and have worked full time for the past several summers, and work part-time throughout the school year. I recently applied for a credit card and was turned down. I would like to establish a credit history. What should I do?

A:You should try to get approved for a card through a credit union or local bank – ideally one where you already have a savings account. If you are unsuccessful, you may have to consider building your credit with a secured credit card. With these cards, you put up a deposit for as little as $250 or $500 and you get a card with a credit limit equal to the amount of your deposit. But be careful, many of these have high fees and high interest rates. So it pays to shop around. We at CreditGumbo have already done much of the leg work for you. Check out our Editor’s Picks of the Best Secured Credit Cards.

Good luck and remember, if you do get a card, please buy only what you can afford!

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