The main difference between secured credit cards and unsecured credit cards is the deposit requirement. Secured credit cards require the holder to keep a deposit with their financial institution or credit card provider. The provider can use this deposit to repay any charges if you fail to make your payments.
The deposit is usually the same as your credit limit, but when you apply for the card, the credit card issuer will do a hard credit check and figure out what your deposit should be based on your credit score. Because you need to keep a deposit on file, it's normal to see lower credit card limits for secured cards – often around $500 to $1,000.
Your deposit will be returned to you when you close your account or if you convert it to an unsecured credit card.