If you are one of millions of Americans in Tennessee or elsewhere who has gone through Chapter 7 or Chapter 13 bankruptcy, you may be going through the process of trying to rebuild your credit. However, many people who have poor credit are often caught in a conundrum: namely, the best way to build credit is with a credit card, but if you have poor credit it is often impossible to get a “traditional” credit card. This is where secured credit cards come in. According to NerdWallet, secured credit cards can help you out of this seemingly-impossible situation.

Basically, a secured credit card will require you to put down a deposit before using the credit card. So if you put down $200 on your secured credit card, your credit limit will be $200. Secured credit cards are different from prepaid cards in that they do actually operate more like credit cards rather than debit cards and most of them do report to credit agencies.

While a prepaid Visa card is essentially cash and will not help you at all with your credit score, a secured credit card can help you rebuild your credit if you have filed for bankruptcy or have other issues that lead to poor credit. For most people with poor credit, a secured credit card is a better option than an unsecured credit card, given that many unsecured credit cards that persons with low credit scores can access often have ridiculously-high interest rates.

Americans who are looking to improve their credit scores in a safe and measured manner should look into secured credit cards. They are easily accessible, and if they are used responsibly, they can help individuals with poor credit to get back on their feet.