The thing is, actually, there are two types of credit card service. The first one is the unsecured credit card or goes with the name regular credit card, while the other is the secured one. For someone from finance field, of course they are all familiar with this term. However, secured credit card vs unsecured may leads some of you who are just a casual user of service into confusion.
Well that being said, let’s keep this secured credit card vs unsecured thread to be simple and straight. An unsecured credit card is that of credit card which you may already familiar with. There is no special term or agreement offered by this kind of service, you are only required to make monthly payments. Moreover, your total amount of transactions is limited up to the limit that they have set. On the other hand, a secured credit card allowed you to decide your own credit limit in accordance to how much you paid for the security deposit.
The Differences between Secured Credit Card and Unsecured One
As stated in the previous simple definition on the paragraph above, the differences between secured credit card vs unsecured credit card started from their limits. Another difference comes in the regard of how easy are they to get. Being someone with a good score of credit and decent credit history is a must for those who want to lay their hands on an unsecured credit card. Therefore, one can conclude that getting an unsecured credit card is not very easy or even difficult.
On the other side of this secured credit card vs unsecured credit card, it does not matter if someone with bad credit history applying for a secured credit card. There is even a big possibility of them getting one. Why? Obviously, the existence of this service is for a reason, in which it is to help people to rebuild their credit score.
It is clear that each of the credit card service offers different benefits for you to enjoy. The benefits offered by secured credit card vs unsecured credit card fall accordingly to their main purpose in your life. Thus, you don’t have to be confused over what to apply. To ease you in making a decision, then you can consider one or two main things.
Are you someone who is in the process to start your credit history? If yes, then it may be safe to have a secured credit card partly because this particular service among secured credit card vs unsecured credit card—will seriously help you to adapt in using a credit card for the first time. With the credit limit being determined by yourself, you will learn how to use the card wisely and just around your league.
Now, are you someone who is already financially capable and so far has no problem with credit? If you are, then an unsecured credit card—between secured credit card vs unsecured credit card—would be no problem for you.