InvestorQ : What is a secured credit card?
Ankit Patil made post

What is a secured credit card?

Gauravi Patel answered.
2 years ago

Anything ‘secured’ in the financial world means that it has some collateral attached to it.

Just like secured loans are loans that have collaterals attached such as say a house or an automobile, etc. a secured credit card is a card that has the collateral of a fixed deposit attached to it.

Bills generated from the credit card, such as the minimum amount due or the late payment charges get deducted from the fixed deposit linked to the secured credit card if the card holder doesn’t pay the dues.

Secured credit cards help an individual build a good credit history.