A secured credit card is a card issued by a bank or a credit union which is fully secured by way of a deposit made by the card holder. So that means in order for you to get a secured credit card, you will need to make a deposit of say $300 with the bank and the bank will give you a credit card on which you can spend up to $300. This limit may be increased based on timely payments or improvement on your credit score.
In other cases this credit card may be linked to the bank account of the credit card holder. So in case the card holder defaults to pay on their credit card bill, the bank can simply deduct that amount from the bank account.
Secured credit cards are a very good way to start building your credit history or repair your damaged credit. Another way of putting it is that if you are not getting a credit card anywhere else, try this out.
Most banks and credit unions issue secured credit cards and you can check with them for the rates they offer to decide which one you should get.
There will always be an annual fee for a secured credit card but some of them do not need an application fee. So find one that doesn’t need you to pay an application fee.