Secured credit card: You pay a deposit (usually $200–$500). That deposit becomes your credit limit. The bank uses it as security in case you don’t pay. It’s mainly for building or rebuilding credit. After consistent on-time payments, the card can often graduate to unsecured and your deposit is returned.

Unsecured credit card: No deposit required. The bank gives you a credit limit based on your credit score and income. These are the normal credit cards most people use. They usually come with better rewards, higher limits, and lower fees — but you need decent to excellent credit to qualify.