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Glossary

Secured Credit

A credit card with secured credit means that the borrower, in order to qualify for the card, has to put up collateral--usually cash--in an amount equal to the credit limit on the card. This type of credit card is useful for people who need to establish or rebuild their credit rating, as they demonstrate their ability to make timely payments and keep their balance under the credit limit, while the lender has no risk.

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