Many odd thoughts on credit cards for bad credit
Your credit line is the amount of this deposit. The secured credit card functions exactly like a regular credit card, and you make monthly payments and are charged an interest rate just like normal. If you default, however, your repayment comes out of the security. Because the lender knows they will be repaid in full from your security even if you cannot pay out of pocket, offering a secured credit card to a borrower with bad credit is a low credit risk. Secured credit cards are excellent for rebuilding your credit score because they count as a real line of credit.