A secured card is a form of credit card where the cardholder pledges their Savings deposit as a guarantee for payment to the bank. This type of card is often utilized by individuals who are new to the world of credit or those looking to improve their credit score. By providing collateral, the bank is more likely to approve the card and the cardholder can use it to make purchases and build credit. It serves as a useful tool for those looking to establish or rebuild their credit history.