Millions of people use credit cards all around the world. A huge chunk of those users made mistakes when dealing with their credit cards. The consequence of the errors is costly. Many have over extended themselves and some have had the cards stolen and had to spend a lot of hours trying to get their money back.

A lot end up in debt and most of the time these are the people who rant about the credit card being the devil. But fact of the matter is, this is not the case. When used properly, credit cards are very good financial tools.

Credit cards are not necessarily just for people who have large sums of money to use. There are some cards even for the financially challenged, and these are called the: 'Bad Credit Cards.'

A bad credit card is just precisely that: a card with a very bad or low credit limit. They carry a higher interest rate and usually have a low limit (approx. $500.00)

There are two types of credit cards: there is the secured and the unsecured credit cards.

Unsecured credit cards are the accounts that are free from the limits of a bank account. The limit of credit is up to the bank's discretion and not up to the size of the bank account. If the bank thinks that a person is deserving of a bigger credit, then it will be given.

This is the usual type of credit cards in the market and is fairly popular among the card shopping people. These are also the cards known to be more respected by other companies. These are also the cards known to send people to a very deep debt.

This is the type of credit card that should be avoided if the applicant is already in a financial mess.

The secured credit cards are the bad credit cards. These cards are grounded on the size of the account a person has. For example, if a person has a $1,000 balance, then that is all the credit a person is going to get. If there is a point where the balance reaches $0, then the person should go and 're-fill' the account. This usually requires placing either cash or certified funds in the account.

The bank limits the credit to the money already present to avoid overspending, thus preventing even deeper debt. This will monitor the expenses of the person and will help the development of a financial recovery for some. But you are limited to the amount you can charge.

These credit cards are also known as 'pre-paid credit cards' for there is only a fixed amount that can be used and the holder is the one who puts it there. These pre-paid cards have evolved in check cards. Although you are not establishing any credit with this type card it allows you to charge things that you need. For example you can charge in grocery stores for food and gas stations for your gas with out going into the station to pre-pay. They are very convenient and usually have overdraft protection.

Once again, no matter what type of card you use remember to use discretion, and don't over extend yourself. Only buy what you can afford.