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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 at all.  Your credit line will represent anywhere from 70% - 100% of your security deposit.

Depending on the credit card issuer, some secured credit cards only require a deposit for a limited time such as one year. In addition, if your payment history with the credit card is good, the credit card issuer may increase your credit limit or offer you an unsecured credit card with more favorable terms.

On the other hand, 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, and many unsecured credit cards offer excellent rewards programs including cash back, miles, and points.  Check out our list of recommended credit cards for excellent credit.

If you don't have great credit and are most interested in improving your credit scores and credit history, you should check out our list of recommended credit cards for building credit first.  Good luck with your credit building journey!