Home / Credit Score / The Difference Between Unsecured & Secured Credit
 

The Difference Between Unsecured & Secured Credit

A credit card and a guaranteed credit card is the deposit or guarantee. If you think about it, an unsecured credit card is really a trust in us. The lender (or credit card issuer) makes the payment to the merchant or supplier who accepts our card with the expectation that we will pay the loan.

Creditors want to know that you can pay your debts before they risk giving you money. Unless you are entitled to at least one suitable credit line, then

But if he did not have a credit history, or one that is not stellar? In the case of poor credit or limited credit, issuers may be willing to offer an unsecured credit line because it represents a high credit risk.

The alternative is a secured credit card. With an insured card, you will make a cash deposit in advance equal to the desired credit line. This is a guarantee that you will be able to pay your credit card balance.

About admin

Check Also

How Do Student Loans Work with My Credit?

Student loans come from two sources: the federal authorities or personal lenders. THERE ARE SEVERAL …

Leave a Reply

Your email address will not be published. Required fields are marked *