1

Prepaid Cards

The bank requires that you deposit from your own money to issue you a credit card. Deposit money into an account; once you have money in the account the bank will issue you a credit card.  You can charge until the money is gone and then you can’t spend any more until you deposit more money. There are no interest charges.

2

Secured Cards

Put $500 into an account and you can charge up to $500.  If you wish you can add more money and you will have more credit.  If you develop a good payment history with the bank they sometimes add to your line of credit without asking for more deposits.

All secured cards have annual fees and higher interest rates.  A secured card can be your stepping stone. 

3

Unsecured Cards

This is the best type of card and should be your goal.  They usually have low interest rates and some have no annual fees.  You need good credit to obtain this card.   About every 3 or 4 months the credit card companies report your history to the credit bureaus.  You need to pay on time every month to build up your positive credit history.