Yes, applying for a secured card does count as a hard inquiry most of the time. Nearly all secured credit cards will do a hard inquiry into applicants' credit reports to assess their creditworthiness, but there are exceptions such as the OpenSky® Secured Visa® Credit Card and the Applied Bank® Secured Visa® Gold Preferred® Credit Card. These secured credit cards with no credit check will not do a hard pull on your credit when you apply.
A hard inquiry, also known as a hard pull, will likely drop your credit score by a few points temporarily. But if you haven’t had any hard pulls conducted on your credit report over the past six months and you don’t plan on applying for a sizable loan in the next few months, this shouldn’t be a problem. Your credit score should rebound from a hard inquiry within a few months.
Also, remember that even though your credit score may drop after you apply, responsible use of a secured card will ultimately help your score much more than the inquiry will hurt it. The hard pull will likely be worth it, in other words, especially since secured cards tend to be pretty easy to get approved for. You can track your progress with free daily credit score and report updates from WalletHub.
Yes, you can be denied for a secured card if you have major negative items on your credit report such as an ongoing or recently discharged bankruptcy, collection accounts, or repossessions. You could also be denied if you don’t meet the issuer’s minimum requirements for approval. Those requirements typically include being at least 18 years old with a physical U.S. address, a Social Security number, and the ability to make payments on the account every month, among others.… read full answer
Other common reasons you’d be denied for a secured card might be incomplete or inaccurate information on your application, not enough funds to cover the required security deposit, or delinquencies on other payment obligations. If you are denied for a secured credit card, consider applying for one of our editors’ picks for the best no credit check credit cards, which are easier to get approved for than normal secured cards. You can also sign up for a WalletHub account and get free personalized credit analysis and advice on how to improve your credit score.
There is no minimum credit score needed for a secured card, since secured credit cards are designed for people with bad or limited credit. Some secured credit cards, such as the OpenSky® Secured Visa® Credit Card, won’t even check your credit when you apply.
Notable Secured Cards with No Minimum Credit Score Needed
It is possible to get denied for a secured credit card, though – even one that doesn’t check your credit. You still need to be at least 18 years old and satisfy the other basic eligibility requirements.
If you’re denied for a secured card, it could mean that you don’t have sufficient income to cover a security deposit and minimum payments, or that your credit history shows serious financial problems like bankruptcy. The specifics vary by card and card issuer. But if you’re denied for one secured card, you could still be approved for another. A secured card is the easiest type of credit card to get, after all.
Improving your credit score with 100 points can be challenging, but that depends on how bad your credit score currently is.
In general, improving a credit score is a lengthy process, but with a flawless payment history, a credit utilization lower than 30% and 0 negatives, it's probable. Impossible to predict, it depends from one account to another.… read full answer
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