A secured credit card (or any kind of secured asset) simply means that it’s backed by something else of value. In the case of a, it’s your cash — in the form of a security deposit — which is used to pay your bill if you default. When you put cash up in advance, it’s easier for an issuer to overlook a checkered financial track record and grant you a secured credit card with a modest credit limit. Read on to learn more.
A secured credit card requires an upfront deposit, which is usually equal to the credit limit on your card. So if you deposit $300, you’ll typically end up with a $300 credit limit on your card.