If you’re looking at getting some form of credit, you might want to think about the types of credit rather than just rushing into things. If you are worried about being able to manage your credit properly, you are actually in good company. As the economy grew worse and worse, the credit market shut down. Many people who were hoping to build their credit had to stop and take things in a different direction.

Yet there are options out there if you’re being cautious — secured credit is one of the best ways to go because you aren’t going to have to worry about being rejected. Secured credit cards actually secure you to put down a deposit — called a security — to open up the card. This isn’t like a prepaid debit card. That’s a completely different setup. Prepaid debit cards allow you to only spend what’s loaded on the card in terms of cash.

Secured cards allow you to build your credit when you might not have any other option. Unsecured cards are great if you can get them, but secured cards can help you get better terms later down the road.


It’s very important to make sure that you are still taking good care of your credit, secured or unsecured aside. You don’t want to charge up everything on your card and then leave nothing available. That’s going to make the lender really think that you are going to spend money foolishly and they could cut your available spending limit down, or even make the entire card due and cancel you as a customer.

Secured cards force you to think more carefully about credit because your money is part of the equation from the very beginning. You’re less likely to run up a card that has your money attached. If you default on the card, you’ll have to actually lose your security deposit. In essence, it works a lot like a house. You’re still going to have to pay “rent”, as there is interest. But you are still going to have some benefits to being able to just sit back and let the rest of life pass around you — something that’s easy to do with a secured card.

You ideally want to have unsecured cards eventually, but taking care of the secured one will make the lender see that you are definitely a trustworthy person. Even if you’re recovering from a bankruptcy, you will be able to tap into secured cards.

Why not look into the benefits for yourself? You’ll truly be glad that you did!