Have you gotten behind in your credit card payments? Maybe you had an emergency that forced you to default on your cards. It happens to a lot of card holders at one time or another. The tragedy is that, after you’ve dealt with the circumstances that caused you to default, you’re left with a low credit score and very few opportunities to get a line of credit. That’s where secured credit cards come in.

Secured credit cards were designed for people like you. They are very useful tools for rebuilding your credit score after tough financial times. Best of all, secured credit cards are available to everyone, regardless of how far their credit score has fallen.

When you apply for a secured credit card, you’re required to open a savings account that will act as your line of credit. That is, if you deposit $1,000 into the account, you’ll have a $1,000 credit limit. The point of this is to protect the bank from losing money on a high-risk card holder. The terms vary by card, but some accounts can be opened with as little as $200.

The good thing about secured credit cards is that you will find banks who will increase your credit limit over time. To enjoy this benefit, you’ll have to make all of your monthly payments on time. Think of it as rebuilding the bank’s trust in you. After a while, your available credit limit will go up. Then your credit history will reflect a history of timely payments as well as more available credit, both of which will help rebuild your credit score.

There are a few things to watch out for when you choose a secured credit card. First, make sure that the card issuer reports to all the major credit bureaus – Experian, Equifax, and TransUnion. It’s no use applying for a card if your timely payments won’t be reflected on your credit report.

Also, some secured credit cards come with exorbitant fees. You want to steer clear of cards that require a setup fee, account activation fee, annual membership fee, and monthly maintenance fee. With a $200 credit line, you’d soon be over your limit from fees alone! Look for cards with few fees, and stay away from exploitative monthly insurance charges.

If you get a secured credit card, never carry a balance on it. Make a few small purchases each month, and then pay them off in full. That way, your credit score will reflect that you’ve made your payments on time, and you’ll pave the way for a better tomorrow.

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