Glossary
Secured credit card
A secured credit card is backed by a refundable deposit, usually equal to its limit, so people with no or damaged credit can get approved and build a history with on-time payments.
It works like any credit card and is reported to the credit bureaus. Many issuers review accounts after several months and may return the deposit and move you to an unsecured card.
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Where you’ll see it on RateHerald
Related terms
- Credit scoreA number, usually from 300 to 850, that summarizes your credit report to predict how likely you are to repay; lenders use it to decide whether to approve you and at what rate.
- Credit limitThe most you can owe on a credit card at once, set by the issuer from your income and credit history; your balances divided by your limits is your credit utilization.
Sources: CFPB: Credit cards · myFICO: What's in my FICO scores