Secured credit cards, or prepaid credit cards, often require a deposit or security collateral before purchases can be made. These cards are designed to provide credit card services for individuals with credit problems, no established credit or the need to restrict their spending. Responsible use of your secured credit card can help build your credit file and increase your credit score. Depositing money on a credit card requires transmitting funds to a credit card with prepaid functionality.
Step 1
Apply for a secured credit card. Cards are offered by banks and most credit card companies. Consider reviewing your credit card options through online credit card review services that outline the basic requirements, features and benefits of current prepaid card offers. Apply for a secured credit card by going directly to the credit card company's website, by phone to the the customer acquisition line or by sending a physical application. Ensure the validity of any website before submitting your financial and personal data.
Step 2
Determine any ongoing usage fees, overdraft penalties, cash withdrawal limits, annual membership fee and the applied interest rate for cards that allow credit based purchases. Some cards offer worthwhile functionality for reasonable service fees, while other may charge more than you are willing to pay for their services. Understand your total commitment before card activation.
Step 3
Review your deposit requirements. Most secured credit cards have a minimum and maximum deposit amount and some may offer interest on your deposit. Your card may require a percentage of your spending limit as a deposit, or may require your total credit limit as a deposit. Plan to deposit sufficient funds to cover your credit card purchases without going under your minimum account requirement.
Step 4
Deposit funds on your credit card. Credit card procedures vary, but generally you can deposit funds through a check or money order sent by physical mail, a direct deposit from your bank or by cash deposited to your account at your bank. Consult your credit card guidelines for acceptable deposit methods.
Step 5
Check your credit card balance. Ensure the total amount deposited on your account is reflected in your credit card balance. You can often check your balance online through an account management service or you can contact the customer service number listed on the back of your credit card for your account balance.
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