Differences between secured and unsecured credit cards

Secured credit cards are especially attractive for those people either looking to build their credit history or looking to re-build their credit history. With periodic reporting to the credit bureau, secured credit cards can go a long way towards re-establishing a creditor’s confidence in a prospective borrower. There is a good selection now available of secured credit cards. Some secured credit cards even offer no fees, which is particularly useful if you are trying to re-establish your credit rating, although no fees is something that will make anyone smile. Secured credit cards are also very convenient when making online purchases, hotel reservations, car rentals or airline reservations as most businesses require a credit card to hold a person’s reservation. Unlike secured credit cards where you generally have to put a security deposit amount down on the card upfront, unsecured credit cards do not require such a payment initially. Unsecured credit cards are great because of the flexibility and freedom they offer users. However, acquiring an unsecured credit card means having a good to excellent credit history and excellent credit rating. There is a very wide variety of unsecured credit cards to choose from and although they demand a good credit rating to obtain one, this is the credit card employed by the majority of the general population. The difference between secured and unsecured credit cards is really the security deposit required by one and not the other – especially now with the competitive rates and privileges that are offered by both types of card. Unless necessitated by a poor credit rating – the choice of a secured or unsecured credit card is entirely up to you!