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A credit builder credit card is a type of credit card designed for individuals who have a limited or poor credit history. It is specifically designed to help build or rebuild credit. These cards typically have relatively low credit limits and may require a security deposit.
With a credit builder credit card, the cardholder can make small purchases and consistently pay off the balance on time each month. This demonstrates responsible credit management and helps establish a positive payment history, which is important for improving credit scores. Some credit builder credit cards also offer credit education resources or tools to help cardholders better understand credit and improve their financial habits.