What’s the difference between a secured credit card and an unsecured credit card?

Secured credit cards and unsecured credit cards work the same, with just one difference: a secured card requires a security deposit up front. 

This security deposit is used as collateral in case you don’t pay at least the minimum amount due on your card each month (similar to a deposit for your electric bill, for example). 

The deposit is usually equal to the credit limit on your card.  

For example, if you have a $200 credit limit on a secured card, you put down a $200 security deposit. At Self, this security deposit is pulled from money that’s already in your Credit Builder Account.

An unsecured credit card does not require a security deposit. Through Self, it’s possible to graduate from a secured card to a partially unsecured credit card if you demonstrate positive usage of credit.  

  • Learn how secured credit cards could help you build credit HERE.
  • Learn how to use a credit card wisely HERE.
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