Open a savings account as a security deposit at a bank that offers consumers a secured credit card. This is the most common way consumers with a bad credit file re-establish credit. If you are not careful, it can be a very expensive way to re-establish credit. More banks than ever are getting into the secured credit card business. That is good for you because it is more competitive.
Competition brings lower cost to the consumer.
The costs of secured credit cards have come down. Find the lowest finance charges and up-front fee possible. Do not get a secured credit card from a third party even if they promise you the moon. Always deal directly with the bank that issues the secured credit card. Do not deal with offshore banks either.