A secured credit card is a powerful tool for building or rebuilding credit because it minimizes the risk for the lender. Unlike a traditional credit card, a secured card requires you to make a cash deposit upfront, which typically becomes your credit limit. This deposit acts as collateral, assuring the lender that they will be repaid even if you fail to make your payments. By using the card responsibly and making timely payments, you demonstrate your creditworthiness to the credit bureaus, which can lead to a significant improvement in your credit score over time. This positive payment history is the key ingredient to unlocking better financial opportunities in the future, such as lower interest rates on loans and the ability to qualify for more rewarding credit cards.