No one ever stops to explain how to work with credit cards or credit scores.

I am talking about building credit here. The task that many Millennials and Gen-Zers are often late to completing. You're scrolling through endless blog pages comparing them, but can't seem to figure out where to begin.

While there is a wealth of information about building credit, few resources outline how to get started. Today I aim to change that.

The answer you are looking for is credit cards.

By using credit cards, briansclub has proven to be the easiest way to build credit. Secured credit cards are the fastest way to get started because they do not have income cutoffs or minimum credit scores. Here's a quick look at how secured and unsecured credit cards differ:

Credit cards without security

Everyone talks about the standard "credit card"

  • The creditor assigns a maximum credit line that indicates how much can be spent (e.g., $2,000) at a time.

It is due at the end of a monthly cycle (30–31 days).

Late payments incur interest at a specified rate (typically 16–29%)

Credit cards with security features

Designed for those who are building credit, this is a starter card

  • The borrower gives the creditor collateral (usually $200-500).
  • Payment is due at the end of each monthly cycle, just like an unsecured credit card, and any unpaid balance is deducted from the collateral to avoid interest. This collateral serves as the line of credit. 

In most credit cards, there are two components to the CVV. The first code is found on a magnetic stripe running lengthwise across the back of the card. You can find more information about this magnetic tape-like strip at Vault Market.

Be aware that the credit card issuer will send you a bill for how much you spend after 30-31 days regardless of whatever option you select. For instance, if your statement states that you owe $171, you have 30 days starting with the invoice date to make the complete payment.

On an unsecured card, failure to pay would result in additional debt in the form of interest; but, on a secured card, the creditor would just remove the $171 from the original value of your collateral.

Now that you have a better understanding of credit cards, spend some time browsing these amazing lists of the top secured and unsecured credit cards for those with bad credit.