Secured Credit Card

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A secured credit card requires a security deposit or another form of collateral. Most secured credit cards require cash that is deposited into an account. The limits set on a secured credit card is based on the security deposit. The majority of secured credit cards are approved regardless of the information found on credit reports or the borrower’s credit score.

On the other hand, an unsecured credit card is not secured with assets and approval is based solely on credit history and income.