How does a secured credit card work?

A secured card requires a cash security deposit upfront — typically $200 to $500 — which usually becomes your credit limit and protects the issuer if you don't pay. Otherwise it functions exactly like a regular card: you make purchases, get a monthly statement, and pay the bill, and the issuer reports your activity to all three bureaus. That reporting is the whole point — on-time payments and low utilization build or rebuild your credit. The deposit is refundable: after several months of responsible use, many issuers either graduate you to an unsecured card or return your deposit and raise your limit. Choose a secured card with no or low annual fees that reports to all three bureaus, and avoid 'fee-harvester' cards that eat your deposit in charges. Treat it like training wheels: pay in full, keep balances tiny, and move on within a year or so.