General Question

onesecondregrets's avatar

What is the difference between a secured and unsecured credit card?

Asked by onesecondregrets (2591points) June 19th, 2009

And given a choice between the two, which should I apply for first?

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5 Answers

tyrantxseries's avatar

A secured credit card is a credit card that requires a security deposit. Secured credit cards are generally for individuals whose credit is damaged or who have no credit history. Your credit line will represent anywhere from 70% – 100% of your security deposit. Depending on the credit card issuer, some secured credit cards require a deposit for a limited time such as one year. If your history with the credit card is good, the credit card issuer may extend your line of credit or offer you an unsecured card.

An unsecured credit card is one that does not require a security deposit. Unsecured credit cards are intended for individuals with good or excellent credit.

onesecondregrets's avatar

Thanks for providing a legitimate answer and being a wise guy.

walterallenhaxton's avatar

With a secured credit card you are not borrowing from the cards issuer. You are borrowing from whoever puts up the security. It could be you or somebody else. The card issuer does not care. All they are doing is providing a card service.

walterallenhaxton's avatar

I would not have one unless they charged far less interest.

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