Though they all may just look like a piece of plastic, not all credit cards are the same. For example, there are secured credit cards and unsecured credit cards. But how are they different beneath the surface and how do you choose a secured vs. unsecured credit card? So what’s the difference between a secured and unsecured credit card? In this post, we’ll help you find out. Keep reading to learn more about the pros and cons of each and how to choose between them. What Is a Secured Credit Card and How Does It Work? A secured credit card is a credit card that requires a cash deposit—or security deposit—as collateral to open the account. Once you’ve deposited the required cash, you can use a secured credit card anywhere a traditional unsecured credit card is accepted. If you have a low credit score or no credit history, you’ll probably start off with a secured credit card. Similar to an unsecured credit card, you’ll be billed monthly for how much you spend in a time period. If you
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