Some people cannot live without credit card. They use it to buy anything. They think they can thrift some spending because they can pay the bill at the end of the month.
Same like secured loan, some credit company offers secured credit card. Secure credit card is different with common or unsecured credit card. You should open a saving account first to secure your credit card. The credit card holder must have $300 $500 or $5,000 to $10,000 in saving account. This money is for collateral. When you cannot pay the payment, the credit car will grab from your saving account.
Secure credit card works is not different with unsecured credit card. We can buy anything with the secure credit card and pay the bill at the end of the month. The credit company will charge interest to your payments too. You should pay some fee too. Many credit cards require an annual fee and one set-up fee.
If the works is similar to common credit, so what is the difference? The difference is that the credit card safe.
People who have bad credit record can apply secured credit card. The company will give you credit card as long you open the saving account as the company require. The credit data is reported to the credit bureaus. If you have a good credit, you can borrow money from other places. This is an opportunity to build your credit history or repair it.
Even this credit card safe, you should be careful. You can waste your money if you cannot control yourself.