My little rants on best credit cards
If you default, however, your repayment comes out of the security. In effect, it's a low risk credit line for the lender, because you are not able to spend more than you have given them, and they know they will be repaid in full if something happens. Secured credit cards are excellent for rebuilding your credit score because they count as a real line of credit. Prepaid credit cards are another safe type of credit cards for bad credit. Having a prepaid credit card is like having an ATM card without a bank account: You deposit money into an account, then withdraw it by charging to the card or by withdrawing from the card.