These are the one of the two types of credit cards. There are unsecured credit cards that generally only require your signature and a monthly interest rate and perhaps an annual fee and they will offer the consumer a designated line of credit.

If we compare a secured Credit Card with the above-mentioned ones, it is much different, but an excellent way to create your credit history or build it backs.

This is very much possible if you have filed for bankruptcy in the past seven years or your credit is not looking so good. These secured Credit Cards are easy to avail. Anybody who wants to avail it can easily obtain because he/she is securing his line of credit with his own resources.

This is usually done with a savings deposits. This deposit generally ranges from $ 500 to $ 1000 and your credit line is secured with a secured credit card is then a percentage of that deposit typically 50 to 100 percent.

The company, which issues your credit card, will pay interest on your deposit but in return there are application and processing fees associated with this type of card, sometimes totaling hundreds of dollars.

You may be eager to apply for a secured credit card as soon as you know about these advantages. But be sure to research properly about the card and its properties before you settle for one. Find out what the total fees is and whether they will be refunded if you are denied a card.

There is an annual fee for a secured card. These cards normally have a higher rate of interest as compared to an unsecured Card.

A secured card is normally very easy to obtain because you are supplying the capital that you will be charging against. This also one of the reason, why this happens to be one of the first credit card one possess.

Debit cards are also a great example of how a secured card works. Once, you open an account at your neighborhood bank, it immediately issues chequebook and a debit card. This debit card can be used anywhere you want.

This card is used until you finish your fund in your account.

Andy Eaton is the owner of http://www.credit-cards-4us.com a site decdicated to helping consumers find the right credit cards, helping them get out of debt.