For instance, if you deposit $900 into an account, you can get a secured card with up to a $900 limit. The amount you're allowed to deposit varies by card. Also be aware that secured cards sometimes charge annual fees and have high interest rates. Use CardRatings to compare credit card offers and get the best deal.
Secured cards are options for those who have either poor credit or who need to build a credit history. Make sure the issuer of the card reports to the major credit bureaus so you have an opportunity to repair or build your credit.
Unsecured credit cards are for those with good credit scores and a proven credit history. An unsecured card doesn't require a deposit as collateral. You'll also get better interest rates and terms with an unsecured credit card.
- Will going from a secured credit card to an unsecured credit card improve my credit?
- Does a credit union secured credit card make as positive an impact on credit scores as one held by a major commercial bank?
- Does an unsecured card build credit faster than a secured card? Does FICO rate them differently?