If your credit is bad or below average, it will likely take some time to restore it. One way to do so is to keep your charges below your credit limits on whatever credit cards you still have, never miss a payment, and never pay less than the minimum payment. It might be difficult for some people to get credit cards following a bankruptcy, foreclosure, or other financial calamity, but some cards are available. Just be sure to get those that will be the most helpful in re-establishing your credit.

Prepaid debit cards may help keep you from further damaging your credit, but they're not credit cards and will not help you build a positive credit history. Getting a credit card and not using it will not help either. Getting a credit card and using it to build a strong credit history may provide positive results--over time.

If your credit rating is bad, you'll probably be charged an annual fee for your card. That's usually unavoidable, but once your credit rating improves you may qualify for a card at no fee.

You might have to put down a security deposit, which could equal your line of credit. (For example, for a $1,000 line of credit, you'd have to deposit $1,000 up front.) However, that deposit will go into an interest-bearing account, and eventually you'll get it back. If you keep up your monthly card payments, your credit limit might be raised without needing to make further deposits.

Look for a card that automatically reports to the major credit bureaus. Your objective at this point is to develop a documented positive credit history.