When you get a secured card, your credit line is a percentage of your deposit, typically between 50 and 100 percent. Check if the bank will pay interest on your deposit. In addition, you also may have to pay application and processing fees. Before you apply, be sure to understand the total fees associated with the card and if and how they will be refunded if you re denied a card. A secured card can require an annual fee, a monthly fee and usually has a higher interest rate than an unsecured card.
Credit cards are very profitable to their issuers.
Credit card companies also profit by charging merchants and service providers a fee each time a customer uses the company's credit card in the merchant's establishment. Charge cards, also called travel and entertainment cards are different from credit cards. Charge cards, such as American Express and Diners Club, have no credit limit. You can usually charge as much as you want, but you are required to pay off your entire balance when your bill arrives. Charge card companies make their profits by charging very high annual fees and by charging merchants fairly high fees each time a customer pays using the company's charge card.