Secured Credit Cards and Security Deposits
Card issuers assume a greater risk by lending to consumers with poor credit - that's why you keep getting denied by other lenders. Secured card issuers minimize this risk by requiring a security deposit before granting you any credit. Your deposit will act as collateral in case you ever default on your account. Deposits may range from a few hundred to several thousand dollars and are generally placed in an interest bearing account, like a savings account. Your actual credit line is usually 50-100% of the amount of your deposit.

More Fees with Secured Credit Cards
In addition the security deposit, secured cards may have higher interest rates and annual fees, and may charge additional fees such as application and processing fees. So, if you'll only be able to spend as much as you deposit and you get hit with a load of fees, what's the point of getting a secured credit card? Well, you'll have the convenience and flexibility of using a credit card. Also, your secured card issuer will be reporting to the credit bureaus. If you manage your account responsibly it can help you to build (or rebuild) a solid credit history.

Before you apply for a secured credit card