Everyone when they are shopping around for credit cards, especially for the first time credit seeker is questioning which type of card is better.  Those who are trying to repair their credit are also left to try to determine how they can get a credit card, without waiting until the end of time to be approved.  While not everyone knows the difference between secured and unsecured there are major differences, and I am going to take this time to explain it to you, in very simple terms so that everyone is able to understand.

Secured –This is the first type of credit card, which is typically reserved for those with horribly bad credit, or those with no credit and no co-signer.  These cards range from 100% secured, where you put funds in a bank account that you are not allowed to access, which secures the credit card you receive.  For example, if you have a $300 credit limit, then you are required to deposit $300 into an account with the bank who gave you the card, and you are not allowed to withdraw funds for any reason.  Typically most secured credit cards will change to an unsecured card after one year of so of making satisfactory payments.  While having a secured credit card is better than no credit card for your credit rating, it is not the best type of card to have on your credit file. 

There are some companies that are starting to offer partially secured credit cards, for these cards they will require a percentage of the credit limit to be secured, for example if you have a $500 credit limit, they may require anywhere from $100 to as much as $400 to be in an account that is not touched.  These cards are not as common, and are only offered by selected companies.  These cards will look better than a completely secured credit card however it is still not as good as an unsecured credit card. 

Unsecured –These cards are completely unsecured, there is no amount of money that must remain in an account in order to use the cards.  So for example there is no money that must be held in a savings account in order to use the card. Within this category there are several varying degrees of cards.  Some require a yearly fee, while others require