Glossary
Secured credit card
A credit card backed by a cash deposit you make upfront — the deposit becomes your credit limit, and it is the standard tool for rebuilding credit.
A secured credit card requires a refundable security deposit — commonly $200–$500 — which typically becomes your credit limit. It reports to the credit bureaus exactly like an unsecured card, so responsible use (low balances, on-time payments) builds credit the same way. Many issuers review the account after 6–12 months and graduate qualifying users to an unsecured card, refunding the deposit. It is usually cheaper and more reliable for rebuilding credit than a high-fee subprime loan.
Related terms
- Soft credit check A credit check that does not affect your score — used for pre-qualification, background checks, and checking your own report.
- Charge-off When a creditor gives up trying to collect a debt through normal billing and writes it off as a loss — typically after 180 days of non-payment.
- Credit score A 300–850 number summarizing your credit risk. It is the single biggest lever on the rate a lender offers you.
- Equity The slice of your home you actually own — its market value minus what you still owe on it.
- APR Annual percentage rate — the interest rate plus mandatory fees, expressed as one yearly cost. The only honest way to compare two loan offers.
- Short sale Selling a home for less than what is owed on the mortgage, with the lender's approval — an alternative to foreclosure.