Multiple choice general knowledge

What is a secured credit card?

  1. A card with a microprocessor built into it in order to provide security in online transactions.

  2. A card where you deposit money into a savings account to act as collateral against your credit line.

  3. A card with a fixed annual percentage rate of the finance charge.

  4. I don't know!
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

A secured credit card requires a cash deposit that becomes your credit line, acting as collateral for the account. This allows people with poor or no credit to build credit history, as the bank takes minimal risk since they can keep your deposit if you default.

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