What does Secured Credit Cards mean?
Just as with any type if loan, taking up the option of a secured credit card it means that you put up a security as collateral for your loan. This collateral can either be your home, but in most of the cases where credit card use is involved this collateral is a security deposit in a banking account.
If you have a very good proof of income and an even better credit history, a security deposit or placing a property as collateral is usually not required. Rebuilding your credit history by taking up the secured credit card loan is generally a helpful solution, but only if you keep up with your repayments to stay away from further debt. In most of the cases, secured credit card options come with a pretty high annual percentage rate (up to 20% in some cases!), plus a pretty heft annual maintenance fee you will have to pay.