Question 62 • FL-2102371-Personal Finance and Money Management
A secured credit card requires a cash deposit that serves as collateral, while still letting you make purchases with a card. Keeping the balance low relative to the card’s credit limit helps maintain low credit utilization as you rebuild credit. Increasing limits or taking a loan may encourage more debt, and canceling paid-off cards can reduce your available credit.
AI-written and checked against the verified answer.