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The main difference between secure credit cards and unsecured credit card lies in when you pay your credit card bill. Unsecured cards are the traditional type of credit card that most people have. With an unsecured card you are given a credit limit by the credit card company, and can charge up to that amount on the card. At the end of the month you receive a bill, and are required to pay a monthly minimum payment on your balance, or can opt to pay off your entire balance.
Secure credit cards work a little different. Secure credit cards are designed primarily for individuals with no credit history, for that whose credit history has been tarnished in some way or is bad. Secure credit cards work in a similar way to your bank account. You would pay a certain amount of money into the card, and then you are able to change up t that amount on the card. You are essentially paying your credit card bill, before you make your purchases rather than after.
Having a secure card for a while can help you rebuild your credit history. After you establish a good credit history with the secure card, you can often be approved for unsecured cards as well and can get your credit, and your credit history back on track.
(c) by Jeffrey Altmire
http://www.best-credit-card-cards.com
(Posted on: April 26)
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