Secured vs Unsecured credit card
Should I get a secured or unsecured credit card?
A secured card requires a refundable deposit and is designed for building or rebuilding credit. Unsecured cards have no deposit and usually need an established score.
Key takeaways
- Secured = refundable deposit, easy approval
- Unsecured = no deposit, needs decent credit
- Both build credit if used right
- Pay in full each month either way
When to choose Secured card
You're building or rebuilding and can lock up a deposit.
When to choose Unsecured card
You qualify already and want rewards or a higher limit.
TL;DR
If you're building or rebuilding, start with a secured card. If you already have a score in the mid-600s+, go unsecured.
Key differences
- Secured: deposit becomes your credit limit, designed for thin/no credit.
- Unsecured: no deposit, higher limits, rewards available.
When each wins
- Secured when approvals are tight or you're rebuilding after a credit event.
- Unsecured when you qualify and want rewards or a higher limit.
Watch-outs
Avoid high annual fees on secured cards. Confirm the issuer reports to all three bureaus.
Related
0% APR is a financing tool for a planned, payable balance. Cashback is a rewards tool for spending you'd already do.
A balance transfer can save real interest — if you have a payoff plan, pay the transfer fee, and don't add new spending to either card.
Wealthypedia is educational. This isn't financial, tax, legal, or investment advice. Last reviewed —.