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

The difference between a secured credit card and an unsecured credit card is that with a secured credit card, you must put down a security deposit before being approved for the card. This security deposit acts as collateral for the lender and is equal to the credit limit on the card. The money you put down does not spend and is held by the lender. An unsecured credit card does not require a security deposit. Instead, the lender assesses your creditworthiness based on your credit score, income and other factors in order to determine whether or not it will approve your application. With both types of cards, you are only able to spend what you have available in your credit limit. However, with an unsecured credit card, you may be able to get higher credit limits than with a secured credit card. This is because the lender is taking more of a risk by not requiring a security deposit. In Georgia, both types of cards are subject to the same state laws. These include the Georgia Fair Credit Reporting Act, which is designed to protect consumers from unfair and deceptive practices. It also includes the Truth in Lending Act, which requires lenders to disclose all terms and fees associated with the credit card.

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

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