Difference between a secured and unsecured credit card

[Augusta]

Secured credit cards are credit cards for those without credit history and it is a type of credit card that needs a cash deposit as collateral. The amount to be deposited is a close amount of the line of credit the cardholder will receive. Like now if one apply for a secured credit card and makes a $500 deposit as collateral it means that the person only qualify for that $500 line of credit .

On the other hand, an unsecured credit card as the name implies need no security of putting money down this means you don’t have to provide a deposit as collateral. Most credit cards are unsecured.as they come with better perks and rewards which includes lower fees and lower interest rates.

Secured credit card needs cash deposit upfront and mostly gotten or given to consumers with poor credit rating. This is because getting approval for an unsecured credit card might be impossible with poor credit score and being unable to improve your credit over time. The fact is that getting a lender to get credit with no payment history is always difficult .

So using either any of these credit cards Is up to the holder involved.

 

[niche]

In some countries, banks are offered secured credit cards to account holders who make a fixed deposit . The limit for the credit card remains very low, though the fixed deposit amount increases every year. Most self employed people, small online business owners prefer this method to get a credit card, since it is difficult to get an unsecured credit card. However one of the major problems for online business owners, is that well paid government employees with salary, pension are falsely claiming to own the credit card of private citizens to get their associates government jobs.