Cash advance fees for secured cards raise an interesting dilemma, considering the money is yours to begin with.
Still, there’s a fundamental difference between a secured credit card and a prepaid card, or a debit card linked to a checking account. The security deposit you place upon account opening represents collateral in case you default on your monthly payments – the card still allows you to make purchases on credit. So, unlike with debit cards, you are not spending your own money. You’re borrowing while your own money serves as security that you’ll pay it back.
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