Secured and unsecured credit cards
Credit cards have become one of the most wanted commodities these days. Irrespective of the type of credit that people have everyone wants to have a credit card for the convenience of making immediate payments. To make it possible for everyone to have a credit card the credit card companies have come up with customized cards like the secured credit cards and the unsecured credit cards.
Both these cards vary differently as the name suggests. However they are for the same purpose. When opting for a credit card it is important that you understand your credit status and then apply for the card that would be the best for you. Usually the secured credit cards are good for people with credit problems. With the secured credit cards you can easily make up on the bad credit mark.
On the other hand qualifying for unsecured credit cards can be a bit difficult. These credit cards usually require flawless credit history and ability to pay back the debt on time. In case you have bad credit and still wish to qualify for the unsecured credit card then you would be offered a credit card with a high APR.
How do these cards work?
Before opting for secured and unsecured credit cards it is important that you understand how these cards work. The secured credit card as the name suggest requires some kind of security before you are issued this card. Usually these credit cards are secured against a bank account and have a limit to which they can be used. The amount of money that you have in your account would be the limit to use this card.
The secured credit cards are advantageous in a manner that they are easy to qualify for and do not require any strict credit restrictions. Anybody can qualify for these cards you just need to provide a security to get approved for these cards.
On the other hand with unsecured credit cards you need to prove your paying ability and you should also have a good credit history. These cards are the usual credit cards that have limits and APR set as per the conditions of the provider. The unsecured credit card provider takes a number of things into consideration related to your financial situation to approve you of these cards.
Whatever be your choice either a secured or an unsecured credit card, make sure that you go through the terms and conditions so that you are aware of what you are signing up for. It is important to go through the fine print also to get an idea about the intricacies related to the credit card.
Examples of secured and unsecured credit cards
Some of the examples of secured and unsecured credit cards are mentioned below:
Applied Bank Secured Visa Credit Card: This is a secured credit card that offers 9.99% fixed APR, your credit limit can be up to $5,000 and there is no need of any income proof.
UltraVX Visa: This is also a secured credit card with a credit line of $25,000. It offers a regular APR of 14.90% and your payments are reported to all the major credit bureaus.
Chase Platinum Credit Card: This is an unsecured credit card with an APR of 9.24%. You can enjoy 0% Intro APR for up to 12 months on purchases and balance transfers.
Discover More Card Monogram: This is another unsecured credit card that offers unlimited cash rewards and you are charged an APR of 10.99%.
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