A secured card is just like a regular credit card but you're going to have to place a deposit on the account before you can use it. Whatever you put on the card is what your credit limit will be. For example, if you place $500 on the card, you can only spend $500. The nice thing about these cards are that you still pay your bills like you would with a regular card but if you don't pay your bill on time, they will dive into your account and take what they need.

The nice thing about these types of cards is that most of them do report to the credit card bureaus. You have to remember that if they don't report to the bureaus, you're not going to be able to build your credit up. There are scams out there that you want to look out for such as a card without a major logo. If the card doesn't have a Visa or MasterCard logo, you'll want to skip over it right away because you're most likely asking for trouble.

How do I know if it's reporting to the bureaus?

This question is fairly simple to answer. What I tell people when they are looking for a card is to call up the credit card company first. What you want to do is ask them all the questions you have and of course, they are going to give you answers that you need. If they don't report to the bureaus, once again, look for another card because it won't be worth your time.

If you don't want to call up and wait on hold, I don't blame you, who does? The next step you'll want to take is by looking at the credit card application itself. Look at the points and see what the card offers. Any good secured card is going to point out that they report to the main bureaus. Many people are in the same boat that you are. They want a card that helps them build their credit. Why would they want a regular card that does absolutely nothing for their finances?

Most of the cards that you find online do report but once again, as long as you follow the tips above, you won't have a problem finding a good card. You just want to make sure that the card has low fees and you can use it at just about any location. As long as it has the major logo from Visa and MasterCard, you'll be fine. If it doesn't, again, look for another card. There are a ton of cards out there. Check with your local bank, online and other places. As long as you do your research, you'll have no problem finding the perfect secured credit card.