Two Types of Credit Cards
Credit card companies offer two different types of cards, unsecured and secured. Unsecured cards create a loan each time you make a purchase. You repay the loan with your next bill or are charged interest on the balance until it's repaid.

Secured credit cards have an account you make withdrawals from, like a checking account. Unlike ATM or check cards, the use of secured credit cards isn't limited to ATMs, but can be used anywhere an unsecured credit card is used.

Getting a Credit Card
There's no set standard about what's acceptable credit for getting an unsecured credit card. Even the same company will change its requirements depending on how much it wants to gain new customers. So if you want an unsecured card, compare the terms for several offers. Having credit cards with bad credit will cost you in higher interest and possibly additional fees. But if it's affordable, it may suit you better than having to set up a security account.

If your lack of credit or poor credit, keeps you from getting an unsecured credit card, than consider a secured one. They come in two varieties, prepaid or debit account. The prepaid type are also called gift cards because they're often bought for use like a gift certificate. And like gift certificates, prepaid cards have a fixed spending limit, so if you buy a $50 card you can use it for purchases until the $50 is spent.

Debit cards have become very popular for people getting credit cards with bad credit records. To get a debit card, you set up a bank account, usually $200 or more, which is security for your purchases. You're usually allowed to charge anywhere for 50% to 100% of your deposit. You pay off your charges monthly, as with an unsecured card. And as you make these monthly payments, you rebuild your credit.

Although most debit card offers are legitimate, there are some things to watch out for. Some companies will charge you high processing and annual fees and excessive interest rates. But since the account is secured, this isn't necessary and good offers will have minimal fees and regular interest rates. Also make sure the company reports your payments to a credit bureau. If they don't it won't help your credit.