What is a secured credit card?

A secured credit card is a type of credit card that requires a deposit, often around $200, to be made before the card can be used. This deposit acts as a guarantee, or a way for the card issuer to be sure that you will pay off your credit card bills. The deposit is usually equal to the amount of your credit limit. In Maryland, the law requires all financial institutions that offer secured credit cards to have a clear and understandable disclosure that explains how the card works, including details about how the deposit works. The disclosure should also include all the fees associated with the card (such as an annual fee, late fees, and/or APR). The law also requires that all secured credit cards should have the same consumer protections as traditional credit cards, such as a final payment due date and an issuer that is responsible for making sure the card is used responsibly. Lastly, the secured credit card issuer must also provide customer service to address any questions or concerns about the card.

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What is a secured credit card?

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