Credit cards have become a necessity for getting through modern life. Even in certain situations where you plan on paying with cash, you may still need a credit card (think making a hotel reservation or booking a rental car). If you have realized that you need a credit card but have found that you are unable to get a traditional one (whether it’s because you have a poor credit history or simply have no credit card at all), there are still options available for you. One of the most popular of these options is to get a secured credit card.

So, what exactly is a secured credit card? A secured credit card is one that requires you to put up collateral in the form of cash to obtain the card. This means that if you get a $1000 secured credit card, before you can starting using the card, you will need to put up $1000 cash as a collateral. Although some issuers of secured credit cards will raise your limit over time without needing to put up more collateral (to reward you for being a responsible user of your card), you will definitely be required to put up the cash collateral when you first get your card.

If you decide that a secured credit card sounds like a good fit for you, you need to make sure that you shop around. While there are some secured credit cards that treat their customers fairly, there are others that try to take advantage of their customers by levying excessive fees. So, in order to protect yourself, the best thing you can do is to fully understand the terms and conditions of any secured credit card that you apply for before you actually sign any binding contracts.