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A secured revolving credit line is one that is secured by collateral, such as a car or a house. Instead, try to pay your balances in full each month and only charge what you can afford to pay off.

A lower interest rate can result in lower monthly payments and ultimately save the loans borrower money over the life of the loan. If the bad borrower consistently maxes out their credit limit and carries a high balance from month to month, they may end up paying more in interest and fees over time. As the north borrower makes payments on the loan, the credit limit becomes available again, allowing the borrower to borrow more money if needed.