Why Are Secured Credit Cards A Good Way To Build Credit?

Secured credit cards are a great way to build or rebuild credit.  Some companies call them guaranteed approval credit cards or instant approval credit card because the banks that issue them require a security deposit.  That security deposit will equal the amount of your credit limit.  Thus if you don’t pay on the card they simply keep the security deposit and they haven’t lost any money.  That’s why they approve pretty much everyone.

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