Credit Cards FAQ
Frequently Asked Questions about Credit Cards
What is a secured credit card?
Secured credit cards require the user to provide a cash collateral deposit which becomes the line of credit for that account. The amount of the cash collateral is your credit limit, so if you put down $250, you will have a line of credit of up to $250.
If you don't qualify for an unsecured credit card due to a limited credit history or credit issues, a secured credit card can be a smart choice. The advantage of secured credit cards is that some of them report your payment history to the 3 credit bureaus, thereby allowing you to rebuild your credit history. Additionally, if you maintain a positive payment history on the card, it is likely the company will eventually qualify you for an unsecured credit card.
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