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alexandr1967 [171]
4 years ago
14

Which type of credit involves a set limit based on what a consumer pays up front?

Social Studies
2 answers:
sergey [27]4 years ago
8 0

Answer:

The type of credit involves a set limit based on what a consumer pays up front:

Secured credit cards

Explanation:

The secured credit card is a debt/credit instrument created based on the fundaments of decreasing the risk of default for the lending institution. It requires the client to pay a "collateral" called deposit that is calculated by the bank as the money the user can be available to borrow and pay. That deposit is your limit and you have to pay that amount to be able to recover your credit line.

kompoz [17]4 years ago
4 0
It would be "secured credit" that involves a set limit based on what a consumer pays up front, since this type of credit is most often used in credit cards that can build up a credit score by making monthly payments. 
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