Millions of people in the U.S. use credit cards. They are used for online shopping, expensive purchases, or even when you just don’t want to pay in cash.

They are easy and safe to use. They usually have a maximum amount you can spend and a minimum monthly payment. It’s important to always pay the minimum required amount, or you’ll be assessed a late payment penalty.

If you do not pay your credit card company back all the money you have spent, you have a residual balance. This balance usually increases because of the interest on your credit card. Interest is the fee the company charges for lending you money. A residual balance is considered a type of debt.

Many people have a residual balance on their credit cards. Debt can cause stress. That is why it is important to spend only the amount you know you can pay back in a reasonable amount of time on your credit card.

There are other types of cards you can use instead of a regular credit card.

Secure credit cards
To open a secure credit card, you need to make a deposit. Usually the minimum deposit is more than $40, and in some cases, you can borrow $200 with that deposit. The credit card company holds this money until the credit card is closed. If you make your payments on time, you can pay back your deposit and switch to a regular credit card. This type of card will help you improve your credit score.

Prepaid Cards
If you cannot get a credit card, you can open a prepaid card.

This card holds the maximum amount of money you have deposited in advance; you can deposit money on some of these cards. Anyone can buy a prepaid card. You can buy them at supermarkets, convenience stores, and gas stations.

You can make purchases with a prepaid card just like with a regular credit card. They are good for making payments to U.S. Citizenship and Immigration Services and other online payments. Having a prepaid card will not help improve your credit rating.

Debit cards.
Debit cards can be used just like credit cards. You can get a debit card by opening an account at a bank or credit union. You cannot borrow money on a debit card. You can only use the money in your account. Sometimes you may have to pay a fee to use a debit card.

What if you do not have a Social Security Number
If you don’t have a Social Security number to apply for a credit card, some companies will also accept an Individual Taxpayer Identification Number (ITIN).