Secured credit cards are designed for those looking to re-build or build their credit for the first time. A secured credit card works almost like a prepaid credit card where you'll need to load the credit card in order to use it.

A secured credit card behaves differently. Here's a refresher on how it works: let's say that a bank contacts you and offers you a credit card where there is no credit check and you are guaranteed to be approved. The only thing you have to do is open an account with them and keep a balance in the account at all times.

If you've never had credit or have a poor credit history, it might be difficult to get a regular credit card. In these situations, a secured credit card might be the only way to improve your credit standing.