It is almost impossible to function in today's society without a credit card. What do you do if your credit won't allow you to be approved for a credit card. Are you doomed to be frozen out of society or is there an answer?
Don't expect credit card companies to have compassion and understand your situation. It doesn't matter that you were young or that you didn't inhale. With derogatory remarks on your credit report you are guilty until proven innocent.
ENTER THE SECURED CREDIT CARD: You go to a credit card company and deposit money into a security account or collateral. The more you deposit the larger your credit line. Usually your deposit is equal to your credit line.
WHY USE A SECURED CREDIT CARD AND NOT A DEBIT CARD?
Secured credit cards influence your credit score. When you make the minimum monthly payment you are creating a payment record that will bolster your credit history.
Secured credit cards are treated like regular credit cards. You can use it for hotels and car rentals. Not all debit cards are able to make these reservations because they put a hold amount on your card.
An additional benefit is the secured card is that other credit card companies will eventually offer you their credit card and your current credit card company will eventually return your security deposit if your payments are on time.