Secured credit cards are a type of credit card that requires a cash deposit as collateral. This credit limit is often equal to 50 percent to 100 percent of the amount of the initial deposit. If you apply for a secured credit card and put down a $1,000 deposit as collateral, for example, you’ll likely qualify for a $500 to $1,000 line of credit as a result.

Click on this link to know more:- https://rioarticles.com/secured-credit-card-vs-unsecured-credit-card/

Getting approved for a traditional, unsecured credit card can be very difficult when your credit score is poor, yet you may not be able to improve your credit over time if you can’t find a lender to give you credit.

Secured credit card payments are reported to the three credit bureaus: Experian, Equifax, and TransUnion. Double-check with the issuing company to make sure it will be reporting your payment history to the three main credit bureaus.

Secured vs. unsecured credit cards

Generally speaking, unsecured credit cards are a better deal for consumers. When a card is unsecured, this means you don’t have to put down a deposit as collateral. Unsecured credit cards also tend to come with better perks and rewards, lower fees and lower interest rates. Those who have a good or excellent credit score have better chances to qualify for this type of credit card.

It should be noted that changing from secured to unsecured credit cards might take around 12 to 18 months. It all depends on how well you manage your payments and your starting score.

When it comes to building your credit score, you’ll use the same process with a secured credit card as you would with an unsecured credit card.