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I was researching secured credit cards for my boyfriend. I never heard anything about secured cards so I have a stupid question. If you pay and put money on the card, how do you pay it off every month? Do you need to keep a certain balance on it like $500? Does it work backwards from a regular credit card? So if you spend $250 on it you have to add another $250 on it? And how do they calculate your APR and interest? I know the fees are high, but it seems like the only alternative to improving his credit.
Additional Details So when people say to pay it off, do they mean pay to get back to the balance and they get their deposit back? i mean if they wanted to close it, do they get their original deposit back? bdancer- But do you get that collateral back when you close the card?
How do you pay for a secured credit card?
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