secured credit card
Collateralized payment card
A secured credit card requires a cash deposit as collateral, typically equal to the credit limit.
If you deposit $500, you get a $500 limit.
The deposit protects the issuer if you fail to pay, making these cards accessible to people with poor or no credit history.
I rebuilt my credit score using a secured credit card for a year.
Unlike prepaid cards, secured cards report to credit bureaus and help establish creditworthiness.
- depositPlace for safekeeping
- rebuildRestore after damage
- prepaidSettled in advance
- collateralSecurity for debt
- limitMaximum allowed extent
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