Whats the difference btwn a unsecured and a secured credit card?
I am trying to re-establish my bad credit and I was told I should get an unsecured card to start off. Is it easier to be approved for an unsecured card rather than a secured card?
I am trying to re-establish my bad credit and I was told I should get an unsecured card to start off. Is it easier to be approved for an unsecured card rather than a secured card?
a secured credit card is ussually a card which requires a deposit of the credit limit just in case you default on the credit card you will definitely get approved for a secured credit card and the limit will be as high as your deposit. After 1 year the account gets re-evaluated and as long as you keep up with your payments the financial institution will more than likely grant you an unsecured credit card which is a credit card that is not secured by anything other than your credit. If you have really beat up credit a secured credit card is a great way to start the other option is to go on Lending tree they offer credit cards for not 100% credit
It is easier to be approved for a secured card because you are putting up the collateral for that card. a secured card means you send a certain amount of money lets say $250.00 to a company and they put this amount in trust for you, then they send you a card and you can charge up to $250.00 on that card, this is secured by your money. An unsecured card is based on your credit and you don’t have to send any money or collateral to back it up. HSBC is an easy card to get unsecured, try them
A secured credit card one where you place your money in the account to guarantee it. In other words you need to deposit 500 with the company to have a credit card with a $500 limit.
You’re almost guaranteed to get approved for a secured credit card. That’s because a secured credit card is “secured” by a security deposit. Normally, your security deposit matches your credit limit. If you default, they’ll use your security deposit to payoff the balance.
An unsecured credit card doesn’t require a security deposit. It’s operates just like a standard credit card.
I would recommend trying the Orchard Bank Platinum card in your situation. It’s an unsecured offer– but if you don’t get approved, Orchard will offer you a secured credit card instead. It’s like applying for multiple credit cards at once– but there’s only 1 inquiry on your credit report. You can find it (and other unsecured offers) here:
Hope this helps. GOOD LUCK!
a secured credit card for bad credit, your charges are not deducted from the deposit you have with the issuing bank. The bank is simply holding your deposit in the case that you default on your credit card balance. You must pay your monthly payments, and owe the bank the balance that you have charged on the credit card. You cannot refuse to pay simply because the bank is holding a deposit without further damaging your credit.
A second option for getting a credit card for bad credit is to get an unsecured credit card. Unsecured credit cards are available for bad credit clients, however, the issuing banks charge high fees to cover the risk of extending credit to a bad credit client. You can expect to pay anywhere from $200-$350 or more in fees which the bank will keep, you do not get that money back. Those fees are upfront costs for obtaining a unsecured credit card for bad credit. In some cases, the bank will allow you to pay the fees over two or more months.
In addition, unlike secured credit cards, if you have bad credit and apply for an unsecured credit card, it is not guaranteed that you will be approved. You may be turned down for an unsecured card, even if you are willing to pay the high fees. Read more about it at: