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.