Secured vs Unsecured Credit Card?

Question

I am aware that a secured credit card will help me boost my credit score as long as a I pay on time, but if I can get qualified for an unsecured credit card, should i get one?

Basically my question is, will one raise my score faster or higher than the other? Do lenders look down upon "secured" credit cards?

Answer 1

Here's the real answer. Both cards build up your credit. The credit bureaus and lenders don't look down on secured cards because they have no way of even knowing whether it's secured or not. That's between you and the credit card company.You should keep in mind that when you apply for credit whether it's secured or unsecured, it creates a "hard inquiry" that can lower your score several points whether you're approved or not. So if you apply for a regular card and get declined, you lose those points, whereas if you apply for a secured card, you still lose points but you have a much better chance of getting approved.

And to you question of whether one raises your score faster than the other, the answer is they're both credit cards and they both work the same way. One doesn't do it any faster than the other. Now you can increase your limit easier with a secured card than you could a regular one by adding to the security deposit. And the security deposit does gain interest while you're building credit. As long as you're paying on time and not maxing out the card, building your credit will take care of itself, and eventually you'll get the deposit back and get a regular credit card.

Answer 2

Secured Vs Unsecured Credit Card

Answer 3

Secured Vs Unsecured Credit

Answer 4

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RE:
Secured vs Unsecured Credit Card?
I am aware that a secured credit card will help me boost my credit score as long as a I pay on time, but if I can get qualified for an unsecured credit card, should i get one?

Basically my question is, will one raise my score faster or higher than the other? Do lenders look down upon...

Answer 5

Secured Card, is your money, unsecured isn't.


RE:
Secured vs Unsecured Credit Card?

Answer 6

Credit bureaus actually like to see both secured and unsecured debt in use by a creditor. One requires backing by something of worth,cash for a credit card - house for a mortgage. If possible try to establish both. As far a improving a score...the higher the credit limit of the card the better, but keep your balance below have of that limit. So for a card with a $3000 limit, keep you balance below $1500. Make payments on time. People don't understand how much a late payment reduces a score. Timely payments will help increase scores faster.

Answer 7

If you can get an unsecured card, that will help you faster. Even if it gives you a high limit, you can request it to be lowered to something manageable for yourself. It takes time to build your credit back up but its well worth it down the road. Even if you get a secured card, after a year you can graduate to it being unsecured.

Answer 8

It seems unlikely that a secured credit card would carry the same weight as an unsecured one because a secured credit card, being tied to a savings account, doesn't demonstrate the same ability to manage credit.

Answer 9

Secured and unsecured credit cards show up exactly the same on your credit report. Secured cards are for people who don't qualify for an unsecured card. If you qualify for an unsecured card, get it.

Answer 10

Secured credit cards are for people who cannot get credit cards in any other way. Having said that, if you can get unsecured one, by all means, go-ahead.