Recently FICO revealed that 35% of consumers have FICO scores of 650 or below. Those scores will make it difficult for many of them to qualify for traditional unsecured credit cards. That may mean more consumers will be turning to secured cards, which are much easier to qualify for if you have less than perfect credit.

Here is an interview I did recently With Fox Orlando in which I explain how secured cards work:

Tips for choosing a secured credit card:

• Choose a card that reports to all three major credit reporting agencies.

• Use your secured card like any other major credit card. Charge things you would buy anyway, and pay the bill in full to avoid interest. You do not have to revolve debt on your secured card to rebuild your credit rating.

• Pay your bills on time. While this may seem obvious, some people think that if they miss a payment it will be taken out of their deposit. That’s not the case with a secured card.

• Understand that prepaid debit cards, which are different animals than secured cards, are not reported to the major credit reporting agencies. Though you may want one for convenience, they do not help you rebuild your credit.

• Use Credit.com’s free Credit Report Card to monitor your progress with your credit over time. It’s truly free (we won’t ask you for a credit card number) and because it’s a soft inquiry it won’t hurt your credit.

Gerri Detweiler – Personal finance author and Credit Advisor for Credit.com, Gerri contributes budgeting, debt recovery and savings information online. She is also the co-author of Debt Collection Answers: How to Use Debt Collection Laws to Protect Your Rights.