Secured Credit Card
A secured credit card is a credit card backed by a refundable security deposit — typically $200-$500 — which usually sets the credit limit. Because issuers take no real risk, approval works even with no credit history, and on-time payments report to all three US bureaus exactly like a regular card.
Secured cards are the standard on-ramp to US credit: the deposit removes the issuer's risk, so approval doesn't depend on having a score.
How it works. You send a deposit (say $300), get a card with a $300 limit, and use it like any credit card. The bureaus see a normal revolving account — there is no "secured" penalty in scoring. After 6-12 months of on-time payments, most issuers graduate you to an unsecured card and refund the deposit automatically.
What to look for. No annual fee, reporting to all three bureaus, an automatic graduation path, and — for newcomers — acceptance of an ITIN or no-SSN application flow. Avoid subprime cards with monthly "program fees"; a fee-free secured card exists at every major bank. Current picks: best secured cards.
Example. A newcomer deposits $500 in month 1, keeps utilization under 10%, and pays on time. By month 8 they typically have a 650-700 FICO and qualify for a real rewards card — the deposit comes back untouched.
Common mistakes: treating the deposit as spending money (it is collateral, not prepayment), and keeping a secured card with a fee after you qualify for better — compare with a credit-builder loan if a deposit is hard to spare.