What is the difference between a secured credit card and an unsecured credit card?

The main difference between a secured credit card and an unsecured credit card is how you obtain them. Secured credit cards require you to deposit money into a savings account, which acts as collateral for the card. This money is held in the account and used to pay any debts you may incur if you default on your payments. Secured credit cards are generally easier to obtain than unsecured credit cards because they involve less risk for the lender. On the other hand, an unsecured credit card does not require you to deposit money into a savings account. Instead, the lender is taking a risk by lending you money without any collateral to secure the debt. In return, they usually charge you a higher interest rate than a secured credit card, as they are taking on more risk. In Delaware, all credit card holders are subject to the Truth in Lending Act and the Delaware Cardholder Agreement, regardless of whether the card is secured or unsecured. These laws provide consumers with certain rights and obligations to protect them from unfair credit practices. They also outline the terms and conditions of each type of card, so that consumers can understand the financial responsibility they are taking on by using a credit card.

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What is the difference between a secured credit card and an unsecured credit card?

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