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You can use your home or car as collateral to get a credit card. Should you?

By JAE BRATTON of NerdWallet

Traditional secured credit cards are a credit-building tool for those with bad or limited credit, but some people can’t swing the upfront cash deposit required to open the account. Some financial technology companies think they have the solution in the form of asset-secured cards. Instead of cash, the credit limits on these cards are backed by collateral such as fine jewelry, a car or home equity. But asset-secured cards have their shortcomings including the possibility of losing the collateral if cardholders default. Whether an asset-secured card is the right fit for you will likely depend on your immediate financial needs — and your tolerance for risk.

Article Topic Follows: AP-National

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