Credit Term
Secured Credit Card
A credit card backed by a fixed deposit you place with the bank as collateral. It is one of the most reliable ways to build or rebuild a credit record when you cannot qualify for a normal card.
With a secured card you deposit a sum — often RM500 upwards — and the bank gives you a card with a limit based on that deposit. You use and repay it exactly like an ordinary credit card, and the bank reports your on-time payments to CCRIS, which steadily builds a positive track record. If you ever default, the bank can use your deposit to cover the balance, which is why approval is easy even for people with no or damaged credit.
Secured cards are a practical tool for new-to-credit young adults, gig workers with irregular income, and anyone rebuilding after past problems. Used well — small purchases, paid in full each month — they demonstrate reliable conduct that can later qualify you for an unsecured card and get your deposit back. The key is to treat the low limit as a discipline, not a limitation.
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This definition is drafted against primary sources (Bank Negara Malaysia, AKPK and the relevant Acts) and is pending editorial fact-check. If you find an error, tell us and we will correct it with a dated note.