- Discussion board

i was just wondering what the difference is. i get a lot of offers in the mail but am always unsure about this secure and unsecure thing.

A secure card is "secured" by a bank account that you set up with the issuer. Your credit line can either equal the total balance in the account or an amount higher than the balance. The issuer basically has collateral if you choose not to pay. You cannot touch the money in the account as long as the card is active, but the deposit typically does earn interest. This can be the only option for someone with bad credit who wants to start establishing a good payment history.

With an unsecured card the issuer extends credit to you with the assumption that you will pay your bill.