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Alecsey [184]
4 years ago
12

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

English
1 answer:
gtnhenbr [62]4 years ago
3 0
The type of credit that involves a set limit based on what a consumer pays up front is a SECURED CREDIT CARD.

A secured credit card requires a cash collateral deposit and the amount of cash deposited as collateral is equivalent to the credit extended to you. For example, you have a secured credit card with a cash collateral deposit of $500 so your credit line is $500. You can then charge items up to $500.

The $500 is what a consumer pays up front. It is also the limit set for the secured credit card type of credit.
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