A secured credit card requires a refundable security deposit — typically $200–500 — that becomes your credit limit. Because the deposit reduces the issuer's risk, secured cards accept applicants with no credit history or very low scores (300+).

In every other way, they work like regular credit cards: you make purchases, receive a statement, and pay your bill. Your payment history is reported to all three major credit bureaus.

1. Use it for one small recurring charge (like a streaming subscription).
2. Set up autopay for the full balance. This ensures on-time payments (35% of your score).
3. Keep utilization under 10%. On a $200 limit, that means keeping the balance under $20 at statement close.
4. Wait 6–12 months. Most issuers will upgrade you to an unsecured card and refund your deposit.

• Discover it Secured — Earns 2% cash back on gas/restaurants (up to $1,000/quarter) and 1% on everything else. Discover matches all cash back in the first year.
• Capital One Platinum Secured — $49–200 deposit for a $200 credit line. Reports to all 3 bureaus.

After 6–12 months of responsible use, your score should be in the 650+ range. At that point, you can apply for a regular unsecured card with better rewards. Don't close the secured card immediately — keep it open to maintain your credit history length.