Before All Else Fails Get a Secured Credit Card

People tend to stay away from secured credit cards for a few reasons. They don't want to put cash collateral toward a credit card. They don't want anyone (e.g. future lenders) to know they have a secured credit card. And, perhaps the biggest reason, secured credit cards aren't considered as sexy as unsecured credit cards. After all, if you don't qualify for a regular credit card something must be wrong. The only thing wrong is that kind of thinking.

These days, banks are cracking down on credit. Even people with decent credit scores are getting turned down for credit cards. So, if you're getting turned down for credit (or think you might get turned down because of your credit history) consider a secured credit card.

When it comes to building or rebuilding credit, forget what you think and what you think everyone else will think. The goal is to get a good payment history on your credit report. Instead of paying hundreds or thousands of dollars to get an illegal payment history, put that money toward a legitimate way of getting a better credit score. With a secured credit card, you don't just get a better credit score, you also get the spending habits that will help you maintain a good credit score.

For tips on picking a good secured credit card, read How to Choose a Secured Credit Card.

• Using Secured Credit to Rebuild Credit
• Pros and Cons of a Secured Credit Card
• 3 Types of Credit Cards to Avoid