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

The difference between a secured and an unsecured credit card is how they are backed. Unsecured credit cards are backed by the creditworthiness of the individual, while secured credit cards are backed by a cash deposit. Unsecured credit cards are usually easier to get if you have good credit, and they can help you build credit. Your credit limit will depend on your creditworthiness. You don’t have to put down a deposit, but you will have to pay interest on any balance you carry over month-to-month. Secured credit cards are backed by a cash deposit. This means that if you don’t pay your bill for the month, the credit card company can take the money from your deposit. Your credit limit, usually equal to the cash deposit, may be reported to the credit bureaus. This can help you to establish or build credit. In Arizona, as in other states, all credit card companies are required to follow certain state laws and regulations. These include laws regarding fees, minimum payments, and annual percentage rates, as well as other consumer protections. Before signing on for a credit card, it’s important to read the fine print so you understand the terms of your credit agreement.

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

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