What is a secured credit card?

A secured credit card is a type of credit card that requires a certain amount of money to be deposited as collateral. This deposit acts as the credit limit of the card and is required to be paid in full when the balance of the card is due. This type of card is generally offered to those with poor credit ratings and/or limited income, and is also commonly used by those people wanting to rebuild their credit. The main advantage of using a secured credit card is that it helps to build a person’s credit rating. Provided payments are made on time, and within the terms of the agreement, the card holder’s credit will improve over time. It is also important to note that a secured card is subject to the same laws and restrictions as any other credit card in Tennessee. This means that the card holder is still obligated to pay interest and any other fees associated with the card. Overall, a secured credit card is beneficial to those who can demonstrate that they can responsibly manage their finances, but could not otherwise do so due to a lack of a credit history or poor credit. By using a secured card, they can show that they can manage debt responsibly, thus helping to build a better credit rating and improving their access to other financial services.

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What is a secured credit card?

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