 TITLE: Understanding Secured Credit Cards CONTENT: What Is the Difference Between Secured and Unsecured Credit Cards?\n------------------------------------------------------------------\nMost credit cards are unsecured. Instead of requiring collateral in the form of a deposit, the issuer looks at your credit history and credit score to see if you're creditworthy. If you are, they issue the card.\nIf you have poor credit or a thin credit file (that is, little or no credit history), credit card issuers know that issuing you credit could be risky. That's where secured credit cards come in.\nTo open a secured credit card account, you'll have to put down a refundable security deposit. Typically, the amount of the security deposit will determine your credit limit (although some card issuers will offer a higher credit limit than your deposit). If you default on your credit card bill, the card issuer can use your deposit to pay off the balance. If you cancel your secured card or convert it to an unsecured card later on, you'll get your security deposit back as long as you've paid off your balance.\nAside from the security deposit, a secured credit card works just like any other credit card. You can use it in the same places that accept unsecured credit cards, and no one will know that it's secured. END