Secured Credit Card

It may sound like a card with some special, high-level encoded protocol to keep your data and your finances safe from nefarious hackers and identity thieves. But, nah...it secures the credit card company from you becoming a deadbeat.

It works like this:

You put a deposit down on the card (say $1,000). That amount becomes your credit limit. You pay off the card as per usual. If you ever default on the card, the company just applies your deposit to the balance. The use of the deposit gives the credit card company the assurance that you'll definitely be able to pay. Payment is secured...hence the name.

It's a product for people with shaky credit. They still get the convenience of having the card, but they have to secure it with the deposit.