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Many consumers have a bit of
confusion when it comes to distinguishing a secured
credit card from an unsecured credit card. They
both carry a brand logo from one of the major
credit card companies and they both can be used
anywhere that major credit cards are accepted. It
is the behind the scene financial activity that
determines the difference between a secured and an
unsecured credit card. A secured credit card is a
guaranteed VISA or MasterCard that has been secured
by a deposit to the issuer's bank. Generally, you
must deposit an amount, ranging from $300 to $5000,
in a low-interest saving account or CD to secure
the credit card.
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You then receive a credit line for up to 100
percent of your account balance. Each creditor has
its own requirements for how much you can deposit
for your credit line. The creditor issues you a
credit card by using your deposit as
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