If you are planning to build your credit then you just cannot leave your credit cards unused in your pocket. You need to swipe and charge some intelligent spending to those credit cards to beef up your credit.

You can actually go around the system to build your credit. No we are not asking you to commit a crime and put in an alternate identity or fake any signatures. You can do it without breaking any law by using secured credit cards or prepaid credit cards.

Secured Credit Cards

Prepaid or secured cards are actually revolving lines of credit. Say you have enough money to put into a card and then use that card for your transactions. Example, you can put in $500 then use the card to buy some stuff, pay some bills, buy medicine or groceries, putting into consideration the fees and that you will not go overboard for what you prepaid for.

How do you find Secured Credit Cards

Secured cards most of the time have annual fees. You need to shop around so you can get the lowest annual fee and of course the best interest rate. It is not impossible to find card with a 0% APR. In case you have the cash to put into, some cards can give you a credit limit of up to $10,000. This kind of secured card will be ideal for someone who has enough liquid assets but did not have the time to build his credit.

If you are just starting to build your credit, a secured card with a limit of around $200 or to a max of $1,000 is enough. You still have to check your finances and pay your monthly bills.

What features will tell you that it’s a good secured credit card:

• Low or if possible 0% APR
• No or low annual fee
• No insurance charges or no monthly fees
• Payments should be reported to all three major agencies every month

The last feature above is the most essential. You are building your credit so its just logical that your timely payments must be reported so you can achieve your goal of eventually qualifying for other types of loans for car or a house, or an unsecured credit card.

Additional features that may be favorable are:

• Promised approval
• Allows cash advances through ATMs
• No credit check or income check to qualify for the secured card

You can look for some popular names like Platinum Zero Secured Visa, Centennial Secured Mastercard, Public Savings Bank Secured Visa, Orchard Bank Secured Mastercard, or First Premier Bank Mastercard.

From that list we can say that the best secured card is the Platinum Zero Secured Visa. It is the best deal that gives 0% APR and no annual fee for the life of the prepaid card. They also report you on time payments to all major credit bureaus. The identity theft protection is a very good added feature. You can get as high as $5,000 for a secured credit limit with this one.

The First Premier Bank Mastercard also receives good reviews.

What to Avoid

Some companies take advantage of those people who want to build their credit. They know that some of these people can be a bit desperate to improve their credit that they will grab anything offered to them. Step back and don’t look back if the secured credit card has the following:

• Bad customer service
• Extremely high annual fees
• Hidden fees

Remember that your low credit score does not give any company the right to treat you with poor customer service. You should also be wary of the high fees which can cut your security deposit and spending power to almost or more than half.

Beef up your Credit

Once you get your secured credit card, start rebuilding your credit. Having the card in your pocket does not change a thing. You need to spend and pay for at least the minimum every month.

Don’t worry about digging yourself a hole. Remember that you have a secured cedit card and you cannot swipe more than what your set credit limit allows.

Don’t be tempted to pay your card in full every month even though you can. It will be a faster way to build your credit if you pay a little more over the minimum every cycle. It is just fine if you carry a balance for around two months. Don’t worry about the money that it will cost you but that’s how building your credit goes.

Credit cards come with a ton of perks like if you need to reserve a hotel room, rent a car, buy something over the internet. You cannot do these things without a credit card. They also come handy with rewards, special offers, or warranty protection.

You can start with a secured card to rebuild your credit score. Timely payments will be the name of the game so you can be assured of a bright financial future. Every time you make a timely payment, you build your good reputation with the company and some secured credit cards will even give you bigger credit limits without asking for bigger deposits. A secured card is a very safe way to fast track your credit building. Companies may also convert your secured credit card to unsecured once they are very satisfied doing business with you.