Which of the following statements is most correct regarding a secured credit card?

Question

Quizplus · Accepted Answer

A secured credit card is designed for those who have bad credit or no credit established yet, as it requires a security deposit to be made, which then becomes the credit limit. This reduces the risk to the lender and allows the cardholder to build or rebuild their credit. The other statements are not entirely accurate - while a secured credit card may offer some level of protection against loss or theft (similar to any other credit card), it is not a form of credit insurance. The level of security technology used by a credit card is not necessarily determined by whether it is secured or not. And, while the interest rate on a secured credit card may be lower than some unsecured credit cards, this is not always the case.

Which of the Following Statements Is Most Correct Regarding a Secured