If you want to establish a credit history, one good way is to apply for a secured credit card. As implied, you can secure this kind of card by depositing some amount in a savings account as a collateral. The balance limit in your secured credit card is usually 50% or 100% of the amount you have deposited. Most credit card companies employ this because it is secure for both parties. The amount of credit you get is what you have deposited in the savings account, thus, the company has a lesser risk of acquiring a very large amount of debt that they cannot handle.

When you make purchases and pay the monthly bill, you're building your credit report. Most people though switch to unsecured credit cards in the long run because secured credit cards have a higher interest rate and annual fees than the unsecured credit card. If you do choose to switch over to an unsecured credit card, responsibility is a big factor, but if you're consistently late in paying your monthly bill then it is best for you if you stick to the secured credit card.

For those young professionals, secured credit card is a good way to start building credit record. It has minimal risk for both the credit card holder and the lender but comes with a higher interest rate than the unsecured credit card. If you're looking for a lower rate then the unsecured credit card is for you. But before you apply for an unsecured credit card, you should have established a good credit record with your secured card first.