Credit Cards: Secured vs Unsecured

Without doubt, the single greatest thing you can do for your credit score is to have a revolving account reporting to all three credit bureaus. There are several types of revolving accounts – HELOCS, Overdraft LOC and Credit Cards. Credit cards are broke down into secured and unsecured.

With secured cards the lender is securing the lender/borrower relationship with a deposit. If your credit score is sub 620, you will typically need to apply for a secured credit card. Your credit limit will depend on your personal credit history and previous relationship with the creditor. If you have a Capital One charge-off do not expect a favorable offer from them.  But the good news is that anyone and everyone can get a secured card. It is my #1 piece of advice to those looking to improve their credit score without a current credit card. Here are some great options for secured credit cards.

Unsecured cards are actually scored by FICO the exact same. They are cards awarded without the requirement of a deposit and typically start at a 620 FICO score or better. The higher the credit score, typically the better the interest rate.  These cards will often include mileage incentives, 0$ balance transfer fees, or no interest time periods in order to entice new business. I have always been a fan of www.creditcards.com as they will offer you a myriad of cards you might be approved for based off one credit pull. The site will also compare and contrast these cards for you.

If your FICO bank card scores are at or above 620, there are quite a few options out there to establish revolving credit history. I recommend www.creditcards.com to find out what cards you will be approved for. This site operates as a brokerage. One credit inquiry can be shopped to many different lenders and their various product lines.  I also like this site to identify 0% interest and 0% balance transfer opportunities.

I have a few options for secured cards listed below.

https://www.creditcards.com/secured/

Leave a Reply

%d bloggers like this: