Updated September 4, 2026. This article is educational and is not a card recommendation or approval prediction.
A secured credit card is a credit card backed by a cash deposit. The deposit lowers risk for the card issuer and often becomes the credit limit. Used carefully, a secured card may help build or rebuild credit if the issuer reports payments to the major credit bureaus.
You provide a refundable security deposit, then use the card for purchases up to the credit limit. You still need to make monthly payments. The deposit usually does not count as your monthly payment, and late payments can still damage credit.
A secured card is not a quick fix. It may not help if the issuer does not report to credit bureaus, if fees are too high, or if the card encourages balances you cannot repay. It should be part of a broader credit plan that includes on-time payments, low utilization, and credit report review.
Read How To Build Your Credit and compare basics on the Credit Cards page.
Sources reviewed: FTC credit education, Federal Reserve credit-building product overview, CFPB credit-card education.
