What is the difference between a secured card and an unsecured card?
Unsecured cards are generally only issued to people with good and substantial credit history. An unsecured card requires no upfront deposit. In contrast, a secured card is generally issued to people with poor and/or limited credit history. Secured cards require an initial cash deposit, which is the basis for the line of credit, and often have up-front account setup fees. Because holders of secured cards are more likely to default on payments, secured cards usually have higher interest rates than unsecured cards. Secured cards exist to establish or rebuild credit. A secured card is useful only if the issuer reports payment history to at least on of the three major credit reporting agencies.
