Today many people who apply for a credit card start with the "Secured Credit Card" because with this option most lending institutions will approve you for credit. When you have problems getting credit approval because of no credit record or poor credit scores the "Secured Credit Card" is the most acceptable way to go.
Why the "Secured Credit Card"? When you get a secured card you need to open up a savings account in the lending institution in the amount of credit you are applying. The money is kept as security for your credit. This does not mean that you do not have to make payments instead it is a way for you to build a good credit score. You should make your payments. This will help to improve your credit score and after six months to a year you might be able to get an unsecured credit card.
Your credit card still comes with an agreement and you need to read it carefully to make sure that your APR will not increase, that you do not need to pay a high membership fee, and that you will not be charged fee's for late payments. All these things can eat up the amount of credit that you applied for causing you not to be able to spend much of the money that is being held in a secure deposit.
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Use the secured credit card to establish a good credit score or rebuild your credit.
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