With a secured credit card, you simply put down a cash deposit that in turn becomes the line of credit for your credit account. This is beneficial if you’re strictly looking to build or improve your credit and you don’t want to have to get a co-signer. Here’s how it works…

If you put down a $500 deposit, you have $500 against which to spend and build credit. As you make “payments” on your secured card over a set period of time (usually 6 to 12 months), the lender will report your good behavior to credit bureaus.

After a while, some lenders may even upgrade you to a traditional credit card once you’ve proven you can make on-time payments. You can find these kind of secured credit cards through major credit card companies as well as through most credit unions.