There are a lot of terms associated with the credit world. With such a daunting vocabulary as variable APR or secured card, sometimes people can get confused about just what a feature of a credit card means.
First, we'll discuss what a secured credit card is. A secured card is a card that is guaranteed. When you apply for one of these cards, you guarantee a deposit of cash or other collateral so the bank can be sure that you will pay them back. This is a must when establishing credit or trying to rebuild a shattered credit rating. So, on the opposite end, unsecured credit cards are cards that you get without any guarantee to the bank that you will pay them back. For this reason, unsecured cards are usually only offered to people who have a good credit standing.
To establish a good standing, most people begin with secured credit cards and work their way up to unsecured credit cards. Since the bank is placing so much trust in you, they have to see a good track record. For this reason, you should always try to keep your credit rating in tip-top condition. Pay bills on time, regularly use your card and immediately pay it off. If you maintain this month after month, your credit rating will begin to rise. You will be known as a trust worthy person who responsibly manages to pay there bills on tine.
Unsecured cards are typically the better cards with higher credit limits, and you will not need to put a deposit down of any kind. You simply get the card and are free to use the money limit set. If you start out with a secured card, make sure you pay your bills on time every month and before you know it, you will be legitimate to be accepted for a more powerful unsecured card.
These are a few things that you can do to get on the road to receiving unsecured credit cards! Best of luck!