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What is a Secured Credit Card? Comments

  • By Jocelyn Black Hodes, DailyWorth's Resident Financial Advisor
  • June 21, 2013

A secured credit card is a credit card linked to a savings account. The funds contained in the account are used by the issuing card company as collateral for credit and may be claimed in the event that the cardholder fails to make the necessary payments. Because of the collateral, this arrangement allows the issuer to take on riskier credit card applicants.

 

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