There are many types of credit cards out there, but an unsecured credit card is what we traditionally think of when we think of an unsecured credit card. In fact, most credit cards are unsecured, giving you plenty of options when you need a new credit card. You still need credit to apply and receive approval, but the requirements all depend on the card you choose.
If you are considering getting a new credit card, an unsecured credit card could very well be the card for you.
What is an unsecured credit card?
An unsecured credit card is one that does not require collateral or deposits in order to receive the card. Upon approval, you receive a specific line of credit that allows you to purchase items with your credit card. It is a revolving line of credit, which means that you are given a specific credit limit. As you spend, you make payments to stay within your limit. Based on your credit, you receive an interest rate that allows you that applies on purchases you do not pay right away.
With an unsecured credit card, you can have the ability to pay for your purchases later either in full or in installments pre-assigned by your credit card issuer. These cards can bear the Visa or Mastercard logo, giving you greater spending power.
Who should get an unsecured credit card?
There are many times an unsecured credit card could be an excellent choice.
- Good or excellent credit: Unsecured credit cards rely upon your credit score in order to receive approval, so it is usually important to hold a good or excellent credit score.
- Emergencies: An unsecured credit card can be a great choice to keep on hand in case an emergency expense comes up, such as