A secured credit card is a type of credit card that requires you to put down an upfront cash deposit, usually equaling the amount of your credit limit.
Secured credit cards work by having the cardholder front a required deposit to open an account, reducing the risk to the credit card issuer of you defaulting or missing a payment.
They work by providing you with a revolving line of credit, meaning you can spend up to an approved amount without making a payment within a monthly billing cycle.
The key differences between secured credit cards vs. unsecured cards come down to:- The upfront deposit you must pay to open a secured credit card- Rewards program offerings- Annual fee options and- Available credit limits