There are tons of credit cards out there, but should you get a secured credit card? A secured credit card is mainly for young people looking for their first credit card or those looking to restart their financial life and build new credit after claiming bankruptcy. Secured credit cards differ from traditional credit cards in that the user makes a security deposit on the card, of say $500. That money acts as the card's credit limit. Should the user default on any payments, the card issuer takes that security deposit as collateral. Secured credit cards are a great way to establish a credit history, if you use them responsibly for a few years and never miss a payment or spend more than the card's limit. Think of a secured card as a regular credit card, but with training wheels. Once you show creditors that you are responsible with a secured card, a traditional card with a higher credit limit is within arms reach.