It can! Some secured card companies will allow you to increase your limit whenever you want, you simply have to deposit more money into your account. Others will let you ask for credit limit increases after a few months of on-time payments have passed. Check your agreement, the details will be in there.  If you have never had a credit card or a loan, a secured card is a great way to begin building a positive credit history with relatively low risk.  If your credit score is low or your credit history is bad, a secured card is a good way to begin raising your score and repairing your history. The risk is a little higher in this scenario since, if you default on this card, it will bring an already low score down, but if you feel like you will be able to make your payments on time, a secured card could be the exact rehab tool your credit needs. Either way, if you need funds, you might be tempted to apply for every secured card and secured loan you can find. Resist this temptation!