If you are looking to improve on your credit score but are having trouble getting approved for a credit card one of the most practical solutions is to consider a secured credit card. A secured card allows users to begin rebuilding their credit at their own pace. Depending on your finances and any particular goals you have for the near future, a secured credit card can be used to get you started on the right path.
Some people may get a prepaid card and a secured card confused but a prepaid card allows you to make purchases but your spending habits are not reported to any of the three credit bureaus. A secured card will however report your spending habits to each of the three credit bureaus thus building a reputable credit report that is hopefully for the good but can be also for the bad as well.
With a secured credit card users simply need to be aware that they will need to put down a deposit that will be used as their credit limit. The money put down protects the creditor in the event that you default on your new credit account and stop making payments. As you use this card responsibly you will see your credit score increase and within a few months you’ll begin to see unsecured credit card offers coming in the mail that are better cards than you secured credit card.