What is a secured credit card?
Secured credit card: A secured credit card is a card that usually requires a refundable security deposit when you open it. The deposit often sets your credit limit.
The deposit works as collateral for the issuer. You use the card and pay the bill like any other credit card, and the deposit is generally returned when you close the account in good standing or the issuer moves you to an unsecured card.
Issuers report account activity to the credit bureaus in different ways, and some may not report to all of them. If you want the account to appear on your credit report, check how the issuer reports before you apply.
When you compare offers
Compare the required deposit, any annual fee, the APR and how the issuer reports to the credit bureaus. Also check whether and when the issuer reviews accounts for a move to an unsecured card.
Related guides
- Choosing a Credit Card by Your Credit Score Range
How your credit score range can point you toward secured, rewards or balance-transfer credit cards, and which fees to check before applying.
- How Your Credit Score Can Affect the Offers You See
Why the offers you see through a marketplace may vary with your credit score, and how prequalification tools try to show relevant options.
This glossary is for general educational purposes and isn't financial, legal or insurance advice. Lendara is not a lender and does not make credit decisions. Lendara is a free online marketplace that connects you with participating lenders and providers, who set their own eligibility rules, rates, fees and terms. Lendara may receive compensation from partners, which may affect which offers appear and their order.