Author: Sean P. Egen
March 30, 2021
Unsecured and secured credit cards are the two main types of credit cards. This infographic by Credit One Bank highlights the differences and similarities between the two.
If you’re ready to apply for an unsecured credit card of your own, see if you Pre-Qualify for a Credit One Bank credit card. It takes less than a minute and won’t harm your credit score.
About the author:Sean P. Egen
After realizing he couldn’t pay back his outrageous film school student loans with rejection notices from Hollywood studios, Sean focused his screenwriting skills on scripting corporate videos. Videos led to marketing communications, which led to articles and, before he knew it, Sean was making a living as a writer. He continues to do so today by leveraging his expertise in credit, financial planning, wealth-building, and living your best life for Credit One Bank.
If you’re in the process of trying to build—or rebuild—your credit, you may’ve discovered that it’s tough to do so without actually having any credit. Most credit card companies want to see that you’ve demonstrated responsible credit usage prior to granting you a credit card, but how are you supposed to demonstrate responsible usage if you don’t have any credit to use responsibly?
A secured credit card could be a good alternative to an unsecured card if you’re new to credit or trying to improve a poor credit history and are unable to qualify for an unsecured card. It can help you learn how to use credit wisely while building or rebuilding your credit.
A secured credit card is a good way for those with little or no credit history to build credit. But there’s one major difference between a secured and an unsecured, or traditional, credit card. A secured credit card requires that some security, or collateral, be tied to it to minimize the card issuer’s risk. This collateral is in the form of a monetary deposit, which the card holder is required to make before they can start using a secured credit card. This deposit is typically equal to the credit limit of the secured credit card.