What are secured credit cards?

When referring to a credit card, the term “secured” indicates that the card issuer requires a cash deposit before allowing the cardholder to start an account. The name for this sum of money is a “security deposit.” And similar to the security deposit that is provided to a landlord in order to rent an apartment, it is kept by the credit card issuer for the duration that the account is active.

People who are establishing, developing, or repairing their credit may find that applying for a secured credit card is a beneficial alternative for them. In addition, establishing credit via the appropriate use of credit may make you a more attractive candidate for financial products such as mortgages, auto loans, and credit cards.

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