What is the difference between an unsecured and secured credit card?


An unsecured card does not require any cash collateral and attracts a higher interest rate.

A secured credit card requires cash collateral before a card can be approved and issued. There are three levels to a secured card:

  • 50% secured
  • 75% secured 
  • 100% (fully) secured. Interest rates will be lower

Secured credit cards attract lower interest rates.