Secured credit cards are created to meet the needs of two groups of consumers. The first group of consumers is composed of people who have never established a credit history or a credit rating. They can be students or immigrants. The second group of consumers is composed of people who needed to reestablish a credit rating after they have gone through difficult financial problems and have recovered from bad debts.
For banks or financial institutions, these two groups of people have not given sufficient assurance that they will be able to handle financial obligations responsibly. But these people also need the convenience of using a credit card. And they can also be potentially good paying customers. Thus, they are offered secured credit cards.