What is the difference between an unsecured and secured credit card?
Answer
An unsecured card does not require any cash collateral and attracts a higher interest rate.
A secured credit card requires cash collateral before a card can be approved and issued. There are three levels to a secured card:
- 50% secured
- 75% securedÂ
- 100% (fully) secured. Interest rates will be lower
Secured credit cards attract lower interest rates.