![]() ![]() If you want a $500 limit, you'll deposit $500. The deposit is typically equal to your credit limit. Secured credit cards may help to build and establish your credit score if you make consistent on-time payments, avoid late fees and keep your balance low. ![]() ![]() If you default on your payment, the lender will be able to keep the deposit. The cash deposit acts as collateral and reduces the lender's risk. Pros and cons of unsecured credit cardsĪlthough Chase does not issue them, secured credit cards are cards backed by a cash deposit.This article will go into more detail about secured and unsecured cards, including: In comparison, an unsecured credit card does not require collateral, so the credit card issuer will want to see a solid history of on-time payments and a higher credit score before approving you. You'll be able to access credit, but will need to put down your own money as collateral first. That's when you may want to consider a secured credit card. Credit cards can help you build credit and purchase the things you need, but if your credit score is less than ideal, it can be difficult to get approved. ![]()
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