Difference Between Secured and Unsecured Credit Cards
Most of the people these days prefer not to carry cash and instead rely on what is known as plastic money. These include both debit and credit cards which are easy to carry and in case they get lost, unlike cash, you do not lose your money.
Credit cards have been around for a long time and there have been many changes that have taken place over a period of time. There are two types of credit cards that are available. One of them is secured while other is unsecured. There is no major difference in the options that are available with the two.
The secured credit cards require the user to deposit a sum of money as security at the time he or she is getting the credit card. On the other hand, an unsecured credit card does not require you to deposit any security in advance.
The secured credit cards are an option for people with little or no credit history. Those who have a decent credit history can more likely going to get an unsecured credit card.
Instructions
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Secured Credit Card
It is an excellent option for students or youngsters who are starting their lives out. Even if you are someone who does not like to use them, having one is not a bad idea since a good credit score is needed in most places.
You need to make a deposit in advance in order to get one. It has all the features of any other credit card and has a credit limit that has been decided at the time of your receiving the card. The Annual Percentage Rate (APR) is generally as per the market’s going rate.
There is a likelihood of a fee attached to these cards as well. They serve you well in building a credit history which you can use in future purchases where credit is involved.
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Unsecured Credit Card
These credit cards do not require any security deposit from the person who gets it. The person will pay as he or she goes. It is a bit of a no strings attached option though you do need a decent credit score and length of history to get one.
The APR is generally not very high if you have a decent history. There are generally no fees attached to the card either. It does help you further strengthen your credit history.
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