A secured credit card, as opposed to an unsecured credit card, is backed by a deposit of cash that you make to the creditor. That way, if you default on your payments, the crediting company has collateral to collect. Numerous times, those with poor credit records will not be approved for unsecured credit cards. In this case, they may opt to use a secured credit card to assist in rebuilding their credit.
If you would like to learn more about secured and unsecured credit cards, contact Tacoma, Seattle, Kirkland, Bellevue, Bremerton, Everett bankruptcy lawyer Ryan Nykamp today at 425-289-9873