I just went down a rabbit hole with the Spritz.finance Visa credit card, which uses rain.xyz to manage the back end. It's similar to the Avalanche credit card. Your deposited crypto is collateral for your credit line (stable 100%, other 50%). Once the payment settles, you are invoiced and have 21 days to pay the balance before your collateral gets liquidated.
21 days is too short.
Makes it more like a debit card with a delay.
So you need to stake coins as a security to make it work!
Yes. Build your own credit limit.
This works, to some degree, like margin credit, except that it's 0% interest and only gives you 21 days to pay the balance. DeFi credit gives you more time, but charges interest. The cards are useful for short-term financing when you know you have the money on the way. In addition, you get the benefits of a full Visa Signature card.