How do Unsecured Credit Cards differ from Secured Credit Cards?
January 11, 2011
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Sifting through credit card offers is confusing. There are so many types of cards out there that it can be difficult to know where to start. First thing you need to do is understand the basics. Knowing the difference between an unsecured credit card and a secured credit card is the first step.
An unsecured credit card is a card that offers you credit without requiring collateral such as property, a house, car, or a deposit of money. Typically, you’re qualified based on your good credit history and your potential to make the payments on the credit card balance.
A secured credit card does require collateral typically some type of deposit of money. If you’re looking for a credit card, but have credit issues, a secured credit card might be right for you. Secured cards can work very well for people that have no credit history, poor credit, or bad credit and are trying to build credit history or rebuild credit history.
If you’re searching for a credit card, make sure you know your credit score. You should have your credit checked at a least once a year by getting an online credit report using a credit report service.