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What is a secured credit card? The term “secured” simply means that you have collateral behind a loan. If you borrow money for a mortgage or home equity, your house is the collateral. If you borrow money for a car, the car is the collateral. If you fail to make your payments, the lender can take possession of the collateral to satisfy the debt. With a secured credit card, the amount of your credit line is secured against funds in your share savings account. Read more to see if this is a good option for you.