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 card you must provide a form of collateral, usually a cash deposit, to be approved. The size of the required deposit can be anything from around $200 to $2,000, depending on the issuer of the card. The deposit then acts as the card’s credit limit and the lender’s protection in case of default. On the other hand, an unsecured credit card does not require a deposit or any form of collateral. It is slightly more difficult to be approved for an unsecured credit card due to the fact that there is no security deposit for the lender, so the lending institution will be relying solely on your credit history and credit score for approval. In Nevada, credit card law states that all credit card holders must be at least 18 years of age and must have a form of valid identification. It is also illegal to use a stolen credit or debit card, or to falsify credit card statements or transactions. Credit card companies must also disclose all fees and other related costs associated with obtaining and using a credit card, and must also provide clear instructions on how to dispute any charges.

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

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