What is the difference between secured credit cards, unsecured credit cards, and prepaid debit cards?
With a secured credit card, your credit limit is based on a security deposit that you send to the credit card company and not on your credit standing. The security deposit you send to the credit card company is kept in a savings account and is used to establish your credit limit. For example, a $300 security deposit would give you a $300 credit limit. Unlike a prepaid debit card, secured cards report to the credit bureaus and the amount in the savings account is not used each time you make a purchase. Unsecured credit cards include a wide spectrum of cards, from the best, low interest rate cards to subprime cards with the worst rates and fees. Unsecured cards are good if you want something like a secured card but cannot afford the deposit that a secured card requires. If you have good credit, apply for the most competitive unsecured credit card offers, because these will have the lowest rates and fees (or no fees at all). If you have high levels of debt and/or low credit scores, the un
