What is a secured credit card?
A secured credit card, as opposed to an unsecured credit card, is backed by a deposit of money that you make to the creditor. This way, if you default on your payments, the crediting company has collateral to collect. Many times, those with poor credit records will not be approved for unsecured credit cards. In this case, they may opt to use a secured credit card to help rebuild their credit.
If you would like to learn more about secured and unsecured credit cards, contact Birmingham bankruptcy lawyer Paula Greenway today at (205) 324-4000.