Plagued by bad credit and want a surefire method of improving your credit score? A secured credit card might do the trick.

To understand how a secured credit card works, you’ll need to know that you’re technically opening two things when you apply for one: the credit card itself, and an account that goes along with the credit card. The amount of money you have to put in the account is usually a percentage of the credit limit on your card. It's often between 10% to 100%, depending on your credit standing. You still have to pay monthly bills on a secured credit card and it does come with annual fees.

The main perk of a secured credit card is that you are covered by the money you’ve deposited, in case you miss a bill payment. If you missed a payment with an unsecured credit card, you would be charged late fees and your credit score would get lowered. We're not saying that you can miss payments on a secured card frequently. If you become a delinquent card user, the credit card company has the right to deplete your funds in the account and close your card.

A good tip to follow when you’re using your secured credit card is to spend within the amount of money in the account. This card is good for bettering your credit because you can learn to control your spending, and know how to spend within a budget. It minimizes the chance of going into credit card debt because the amount you spend has to be below the amount in your account.

Have more questions about your credit cards? Wondering which type of credit card is right for you? Ask our credit card guru and read these credit card reviews.