2006-09-26 16:18:01 · 6 answers · asked by Angel B 1 in Business & Finance ➔ Credit
A secured credit card is one which has an asset tied to it that the credit grantor can go after if you don't pay your bill.
Something like cash in an account or your home equity, etc.
An unsecured credit card is one that they grant you without having some sort of financial asset behind it, which is much more risky for the credit grantor because they have to write off the bad debt if you don't pay it back.
A secured credit line is sometimes required when a person has bad credit.
2006-09-26 16:58:31 · answer #1 · answered by markmywordz 5 · 0⤊ 0⤋
a secured credit card is one that you pay the company a given amount, they hold in a savings account ant that is your limit on the card. If you don't pay they get the $$ from the account you paid and the have no loss. a unsecured is a normal card that you are issued and you are given a credit limit. If you default the cad insurer has no security and can lose the money. a car loan and a mortgage is another type of secured loan that if you don't pay they repossess the property.
2006-09-26 23:49:43 · answer #2 · answered by robug 3 · 0⤊ 0⤋
Secured means you have put some $$ on account with the credit card company to cover what you charge. In other words, it's not a loan...it just provides you with the means to be able to charge things. It acts kind of like a debit card. Unsecured is the standard credit card you and I think of.
Secured are used for those folks who have lousy or no credit but still want to be able to have a VISA or other card.
2006-09-26 23:21:44 · answer #3 · answered by MickYahoo 2 · 1⤊ 0⤋
Unsecured is one that is given to you based on your GOOD credit rating.
Secured one is one that is where you ive them a sum of money and then they give you the card and a lowish limit...........this can be given for a variety of reasons, poor credit rating or just starting out.............the best type is one that will CHANGE from a secured to an unsecured after a period of time where you show that you are a GOOD credit risk..............
2006-09-26 23:22:11 · answer #4 · answered by candy g 7 · 1⤊ 0⤋
a unsecured credit card is one where you apply for[ with out paying any money for it basing it on your credit rating... a secured card is when you pre pay a deposit of [$200.00 or more] and they issue a credit card with that limit.you pay like you are supposed to and then they will increase your limit in a year's time. and you are starting your credit history. do this for at least 2 years and then apply for a unsecured card.
2006-09-26 23:42:55 · answer #5 · answered by churchonthewayseniors 6 · 0⤊ 0⤋
secured debt you cant declare bankruptcy on. most credit card are unsecured and that why they have such high rates. your mortgage is secure because they have the house as collateral.
2006-09-26 23:20:09 · answer #6 · answered by gsschulte 6 · 0⤊ 1⤋