Secured credit card,
Definition of Secured credit card:
A secured credit card is a type of credit card that is backed by a cash deposit from the cardholder. This deposit acts as collateral on the account, providing the card issuer with security in case the cardholder can't make payments. Secured credit cards are often issued to subprime borrowers or those with limited credit histories (so-called thin-file borrowers). .
With standard reporting to credit reporting agencies, these cards can help borrowers improve their credit profile.
Credit card backed by a savings account balance or a fixed deposit.
How to use Secured credit card in a sentence?
- Secured credit cards typically have lower credit limits and more fees than unsecured credit cards do.
- A secured credit card is a type of credit card that is backed by a cash deposit, which serves as collateral should you default on payments.
- Consumers typically obtain secured credit cards to improve their credit scores or establish a credit history.
- The deposit aside, secured credit cards function like any credit card.
Meaning of Secured credit card & Secured credit card Definition