So you want a credit card but have a bad (or no) credit record? Don't despair! With secured credit cards, no credit checks will be made against your name when you apply. As long as your age, residence and social security number all check out, approval is guaranteed!

Here's how secured credit cards work. You apply just like any other credit card, but with secured credit cards you also deposit a sum of money in a linked, interest-paying account. Initially at least, the amount of money in your savings account then becomes your credit line.

Clearly this means that, to start with at least, you can't use a secured credit card to borrow money you don't have - so it's not a method for getting yourself into more debt.

However, the big advantage is that your card can be used just like any other credit card to buy things, whether on-line, over the phone or in person. There is nothing on the card to reveal that it is a secured card. The only people who will know this are you and your card issuer. So if you need a credit card and can't otherwise get one, a secured credit card could be the ideal solution for you.

Not only that, the best cards report to the three main credit reference agencies (Experian, Equifax and TransUnion) every month. As long as you use your credit card responsibly and pay off at least the minimum balance each month, your actions will help to repair your credit record, or to establish one for yourself.

Within a few months, if you have shown that you can use your card responsibly, you are likely to be offered a bigger credit line by your card issuer. With your ever-improving credit history, you may also be able to apply successfully for a standard credit card or other forms of credit (such as a bank loan).

One drawback with secured credit cards is that, unlike ordinary credit cards, you may be asked to pay a processing fee when you apply. This is in addition to the money you will have to deposit with the issuer as security. If you regard this as a stepping stone to establishing a good credit record, however, this one-off fee is literally a small price to pay.

Secured credit cards are available from a growing number of issuers. One example is the New Millennium Bank, which offers a secured Platinum Visa? or Mastercard?. As well as the benefits mentioned above, the NMB card offers $100,000 travel accident insurance, extended warranty protection, and a special high introductory savings rate on your deposit.

As with all credit cards, however, it is important to shop around and not simply apply for the first secured card you see. Different cards offer different combinations of terms and incentives, and the best card for one person may not be the same as for his or her neighbor. Independent credit card comparison sites can make this easier for you by listing all the best current credit card offers, and also have a range of articles offering unbiased advice and information.