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What's the difference between secured and unsecured?

A secured credit card is a credit card that requires a security deposit. Secured credit cards are generally for individuals whose credit is damaged or who have no credit history. Your credit line will represent anywhere from 70% - 100% of your security deposit. Depending on the credit card issuer, some secured credit cards require a deposit for a limited time such as one year. If your history with the credit card is good, the credit card issuer may extend your line of credit or offer you an unsecured card.

An unsecured credit card is one that does not require a security deposit. Unsecured credit cards are intended for individuals with good or excellent credit.

Consumers most interested in improving their credit scores and history can check out our list of the 5 best credit cards for building credit.