If you’re looking to re-build or establish your credit once again, there are a few things you need to know before you just pick out the first secured credit card and apply. Like other credit cards, there are a lot of things you need to know before you click that apply button.

If you don’t know how a secured credit card works, I’ll give you a quick cliff notes version so that you get a better understanding. A secured credit card is a little different than you regular credit card. Instead, a bank will ask for a security deposit. Depending on what bank issuer you choose, these deposits will vary. It can be anywhere from a few dollars to a few hundred dollars. The reason a bank asks for a deposit is because of your credit history. You’re going to have to re-build faith with credit card companies and they want this security deposit for security. This means that if you don’t pay your bill off in time, they can simply dip into your account and take the money they need.

When you’re looking for your security credit card, there are a few questions you’re going to have to ask yourself before you apply and the questions are as follows –

Does the card report to all the credit card agencies?

Does the credit card have a major logo such as VISA or MasterCard?

How much will I need to deposit to start my account?

The number one question is a big one because the point of a secured card is the fact that you’ll want to re-build your credit. Before you apply, you’re going to want to know if they report to the three major bureaus. If the card doesn’t report to the bureau, you’re going to want to choose a different card because this will defeat the purpose of the card if you’re not able to re-build your credit properly.

The other two questions you’ll want to ask is related to the major credit card company logo. You’re going to want a card with a major logo like Visa and MasterCard because sometimes there are cards out there that are third party and aren’t accepted by many retailers so not only will you be out your deposit for a while, you’ll be out a credit card and you’ll be on the hunt all over again. So, when you do look for a card, make sure it does have a major logo.

As for the deposit, make sure you know how much you’re going to have to deposit. As I mentioned earlier, all the deposit numbers are going to be different, so make sure you have a set number on how much you can deposit and stick with a card within your budget. My word of advice is that you don’t pick a card that requires you to deposit more than five hundred dollars. That number is generally higher than the industry average.

When you’re on your search, make sure you just simply ask yourself these questions. If you can accomplish this task, you shouldn’t have trouble finding the right card to re-build your credit.