If you have had a bad financial history paying bills late, overextending your credit, or by not having any credit 
history at all, a credit card can help you on your way to better FICO scores and overall credit history. For those still stuck in financial debt heaps, this advise may not ring very true. But the reality is in order to achieve good credit, you need to use credit responsibly.
This is true even for people who have no debt to speak of and have a good payment history. If there is no revolving credit accounts, mortgages, or loans, a credit score will still suffer. This may seem okay for people done with financing a home or a vehicle but more and more places are relying on the consumer credit score in order to determine worthiness in other areas. For instance, insurance companies pull credit reports in order to determine premium costs. Apparently, there is a correlation between financial responsibility and driving responsibility. If your score is not up to par due to lack of credit, you might end up paying much more for insurance than necessary.
So how can you improve scores with a credit card? It’s relatively easy and you don’t have to invest a lot of money in the plan either. Here are some tips to rebuild your credit score with a credit card:
Check Your Credit
It may be harder to determine your financial actions if you have no idea where you stand. Request a copy of your credit report for each of the reporting bureaus. You will have to pay for your FICO score but every consumer with a credit history is allowed one free copy of each report per year. Check through your entire report for accuracy and note your credit score and where it stands nationally.
Go Prepaid
Shop Smart
Credit cards are plentiful and prepaid cards are no exception. You can search for a prepaid cards and compare the different benefits, account limitations, fees, and the rewards that go along with different cards. Never apply for the first card you find and never apply for every card offer you receive. A bad credit decision with prepaid cards can still negatively affect your credit score.
Spend Wisely/Pay Responsibly
Once you have your credit card, make it a priority to shop and spend wisely. Choose to use your card for very specific purposes and always have the cash to backup what you spend. Prepaid cards will need to be ‘reloaded’ so the concept of paying debts in full each month is relatively the same. For instance, designate the card for all your gas purchases. If there are rewards programs that go along with your card, you can end up saving money each month. This method will also help you track your spending each month, an important task in personal finance.
Credit cards don’t spend themselves and a responsible card holder can use a credit card to get back on track and improve their necessary credit scores and credit history.
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