Reality Radio

Broadly speaking there are two types of credit cards.  One type is unsecured credit cads while the other one is secured credit cards. The later is normally associated with collaterals for approval.  An amount is predetermined for such type of cards towards security.  The security deposit must be equal to or greater than the value of the credit limit in the credit card.  

Collaterals that are used as security for the secured credit cards could be anything from an automobile to valuable jewelry or even your immovable properties like land or house.  People who are not eligible for credit or have poor credit reports are the one for whom such secured credit cards are meant for. Such cards help them in rebuilding their credit reports.

Usually such cards are no credit history credit cards that you would use to repair your bad credit report.  Understandably the credit limit for such cards is low at around $250.  You may also have to pay additional fees there. You must clearly comprehend the fee structure before you venture to buy one such secured card for your use.

There is however one advantage along the line.  After a certain period you can ask for a raise in your credit limit.  This will depend on the past use of your card.  If you have been using the card as a responsible person and paying out your bills timely, there is every possibility of the card provider raising your credit limits.