Secured Credit Card

Quick Definition

A credit card backed by a cash deposit, used to build credit.

Full Explanation

A secured credit card requires a deposit that usually equals your credit limit. It reports to the credit bureaus like a regular card, making it a common tool for newcomers and anyone rebuilding credit.

Related Terms

Credit Score

A 3-digit number (300–900) indicating your creditworthiness to lenders.

Credit Limit

The maximum amount a lender allows you to borrow on a credit card or line of credit.

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