What are the differences between secured and unsecured credit cards?

What are the differences between secured and unsecured credit cards?

Secured credit cards require a cash deposit as collateral, while unsecured cards do not. Would you like to know more about how they work?

Yes, how does the deposit for a secured card affect my credit limit?

The deposit usually serves as your credit limit. For example, if you deposit $500, your credit limit will typically be $500.

Are there any benefits to using a secured card?

Yes, secured cards can help build or rebuild your credit score, and they often report to credit bureaus.

What about fees? Are they different for secured and unsecured cards?

Secured cards may have higher fees, but it varies by issuer. Unsecured cards can also have annual fees, so it's important to compare.

Can I switch from a secured card to an unsecured card later?

Yes, many issuers allow you to upgrade to an unsecured card after demonstrating responsible use.