Definition
A credit card backed by a cash deposit you pay up front, often used to build credit from scratch or rebuild it.
What it means
With a secured credit card, you give the issuer a deposit, often a few hundred dollars, which usually becomes your credit limit. You use the card like any other credit card and get a monthly bill. If you do not pay, the issuer can keep the deposit. Many secured cards report to the nationwide credit reporting companies, so on-time payments help build a credit history; ask the issuer before applying, because a card that does not report will not help. Some issuers review accounts after several months and may return the deposit and move you to a regular card. The CFPB lists secured cards as one way to start or rebuild credit. Compare annual fees and APRs, and keep the balance low relative to the limit.
Example
A $300 deposit gives a $300 limit. Charging a $30 phone bill each month and paying it in full keeps utilization at 10% and builds a record of on-time payments.
Illustrative numbers only. Your situation will differ.