{"id":4374,"date":"2022-08-01T09:13:48","date_gmt":"2022-08-01T09:13:48","guid":{"rendered":"https:\/\/michaelleander.me\/?p=4374"},"modified":"2022-08-02T10:08:00","modified_gmt":"2022-08-02T10:08:00","slug":"difference-between-secured-and-unsecured-credit-cards","status":"publish","type":"post","link":"https:\/\/michaelleander.me\/difference-between-secured-and-unsecured-credit-cards\/","title":{"rendered":"Difference Between Secured and Unsecured Credit Cards"},"content":{"rendered":"\n
The credit card is one of the most valuable financial tools today. With a credit card, you can make convenient purchases, get cash from an ATM and pay for goods or services over time. The catch is that you must first apply for and receive this \u2018credit\u2019 with a specific credit card issuer.<\/p>\n\n\n\n
Despite the wide variety of options available, there are two main types of credit cards: secured and unsecured. <\/p>\n\n\n\n
Read on to learn more about the differences between secured and unsecured credit cards so you can choose the right one for your unique situation.<\/p>\n\n\n\n
A secured credit card is a type of credit card that allows you to build your credit history by making regular payments on a designated amount. You will need to provide a cash deposit set as collateral and held by the card company.<\/p>\n\n\n\n
If you default on your payments, the card company will use your security deposit as reimbursement. You can only qualify for a secured credit card if you don\u2019t have an established credit history. It takes time to build a positive credit history, but it\u2019s fairly easy to do and especially easy if you have an unsecured credit card.<\/p>\n\n\n\n