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This type of credit card requires a cash deposit in the amount of the credit limit that operates as collateral. Lower insurance premiums. Insurance companies often pull your credit before determining your rate. Apply for a secured credit card if you can’t get approved for a traditional credit card. Improved rental prospects.
For example, if you put $1,000 into a savings account, it can act as collateral for a credit card with a $1,000 credit limit. Some examples include: Collision damage waiver on auto rentals, enabling you to decline autoinsurance fees charged by car rental companies. $0 In most cases, you’ll be given a secured credit card.
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