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 the amount of money required to open the account. With a secured credit card, you must provide a cash deposit to open the account which will act as collateral in case of a default. This deposit is usually equal to the line of credit that the card issuer will grant you. For example, if you deposit $500, the issuer may grant you a $500 line of credit. In Florida, secured credit cards are regulated by the same laws that govern unsecured credit cards as outlined in the Florida Consumer Collection Practices Act. With an unsecured credit card, no cash deposit is required, and the card issuer will simply decide how much credit to grant based on your creditworthiness. Typically, unsecured credit cards have larger lines of credit, but the applicant must have a higher credit score or more established credit history. In Florida, unsecured credit cards are also regulated by the same laws that govern secured credit cards as outlined in the Florida Consumer Collection Practices Act. In summary, the main difference between a secured credit card and an unsecured credit card is the amount of money the account holder has to deposit in order to open the account. Additionally, secured credit cards have a lower credit limit than unsecured cards and generally require a lower credit score or credit history.

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

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