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This limit is typically a portion of the loans cardholder's overall credit limit and is set by the credit card issuer. This means that there may be fewer protections in place to ensure that consumers are treated fairly.

Using a secured credit card responsibly can help you build or rebuild your credit. And once you are approved, the credit money can be transferred into your bank account in just a few hours or days. For example, if the credit borrower has a credit limit of $10,000 but only borrows $1,000, they will only pay interest on the $1,000 that they borrowed.