Secured Credit Cards Flashcard

Front

What is the purpose of a secured credit card?

Back

To help you build credit over time

Front

What is the main difference between a secured credit card and an unsecured credit card?

Back

Secured credit cards require a refundable deposit, while unsecured credit cards do not.

Front

What is a consideration when choosing a secured credit card issuer?

Back

Whether they offer both secured and unsecured credit cards

Front

What is a potential advantage of choosing an issuer that offers both secured and unsecured credit cards?

Back

The option to upgrade to an unsecured credit card in the future

Front

What is a common fee associated with secured credit cards?

Back

An annual fee

Front

What is an alternative way to build credit besides using a secured credit card?

Back

Being added as an authorized user on someone else's credit card

Front

What is a potential disadvantage of being added as an authorized user on someone else's credit card?

Back

If you default on the credit card bill, the primary cardholder is responsible

Front

Who might consider applying for a retail credit card?

Back

Someone with fair credit

Front

What is a potential drawback of using a retail credit card to build credit?

Back

Higher interest rates

Front

What is an important factor to consider when using any type of credit card?

Back

Paying off the balance in full each month