secured credit card is offered to an applicant who may not be approved for an unsecured credit card, by the credit card company. A secured credit card is a form of credit that requires you to back your credit line with a cash deposit. For example, if you transfer $500.00 to a secured credit card from your bank account, the credit card company will extend you that much credit on the credit card. Many banks will pay interest on he money deposited to guarantee the credit line.