Secured credit cards are provided against fixed deposits. The credit limit may be equal or a particular percentage of the fixed deposit amount. Therefore, if the cardholder fails to make a payment, the same will be deducted from this deposit. 

Individuals who wish to build their credit or improve their poor credit score can avail secured credit cards.

Some other features of the secured credit card are as follows – 

• Low joining fee – Secured credit cards usually come with a low joining fee.
• No income proof required – Few financial institutions offer these credit cards without the need of any income proof documents.  
• Welcome vouchers – Cardholders can receive welcome vouchers of different brands and retailers upon availing the card.
• Dining offers – These credit cards offer discount on dining from restaurants all over the country.
• Cash withdrawal – Few credit card providers also offer the benefits cash withdrawal up to 100% of the credit limit. 
• Fuel surcharge waiver – Few secured credit cards offer fuel surcharge waiver.
• Low interest rates – Some of these credit cards also charge a nominal rate of interest.  

Secured credit cards act as a stepping stone to availing traditional credit cards as it enables one to build up a positive credit history.