Secured cards have tended to have an unsavory aura about them. Some issuers played on the desperation of applicants by charging stiff fees and high interest rates. Often the cards were marketed over 900-number telephone lines that imposed a charge even for asking about the card. Others were marketed by "credit repair" outfits that "guarantee" to get you a card no matter what your credit history.

the relationship between the card holder and card issuer is different. To obtain a secured card, an applicant must place with the issuer a cash deposit ranging from a few hundred dollars to several thousand. This deposit is pledged to cover any default by the card holder on debts incurred using the card.

[Nigel Morris] said Signet is seeking customers with whom it will have a long-term relationship. The bank's market is people "looking to use the secured cards as a way to develop a credit history or to improve on a history of bad credit," Morris said, "and as they improve with us and if the customers show they can handle the card responsibly, we will graduate them to a normal card."