what is a secured credit card?
How do they work basically ? Are their credit limits low ?
- ALv 77 years agoFavorite Answer
this is how they work, in the bank or credit union you deposit say 500.00, this is the security for the card. you will be able to use 500.00 against the card, You will need to pay off what you charged each month and the bank holds the 500.00 in the event you do not pay. The credit limit will be equal to the deposit you make, this is a good way to learn how to use a credit card, and make sure you pay it off in full each month
- Silly GooseLv 77 years ago
Yes, the limits are low.
All banks have different offers. Most common, you put in $500 and that is the money you can use on the card monthly.
When you get the bill, you pay back all of it to gain good credit.
Your score in the lower 600's may get you turned down.
I would worry about what is showing on your credit reports and fix it first.
Collection agencies sue people for their money. Hope you have savings.