Graduating to an unsecured card

Secured cards can be used as a stepping stone to a regular, unsecured credit. Use your card to make purchases - just having the card but not using it does not help you build credit. Try to graduate to an unsecured card as soon as you can by making sure all your payments reach the company before the due date and staying within your credit limit.

Having a secured credit card can help you build or reestabish your credit, but a missed payment or a bounced payment check will set you back badly. If you are having money troubles, at least pay the minimum amount due on your credit card by the due date. When you can, make more than the minimum payment to avoid extra interest that will prolong your debt.

After six months to one year of on-time payments and careful use of your credit limit, you may begin to get offers from unsecured credit card issuers. Before accepting any card, read the fine print carefully. Don't cancel your current card until you receive the new one.