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Unsecured Credit Cards

Written by Kathleen Gagne
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Most of the credit card offers you'll find are for unsecured credit cards. These are usually the best credit cards, since they come with fewer restrictions than secured credit cards. However, if you have bad credit, there's nothing wrong with going for a secured credit card.

Secured vs. Unsecured Credit Cards

The basic Secured Credit Cards 101 is that a secured card is linked to a bank deposit that literally "secures" your line of credit. Offers for unsecured credit cards require no such deposit. Your credit limit is tied to the company's opinion of your credit-worthiness, not a bank account.

Of course, a secured credit card can be a gateway to the world of unsecured credit cards. As long as you have the money to keep in the secured account, you can be the worst credit risk in the world and still get offers for secured credit cards. But if you do well with your secured card over an extended period of time, the credit card company might re-evaluate you, and offer you an unsecured card.

No matter what kind of credit card offer you choose, the key is to do your homework first. By going online and comparing what different companies have to offer, you can truly make the most out of your credit card. Look for a low APR, no annual fee, and whatever perks will most benefit you, and you'll be amazed by how happy you'll be with your credit card.


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