What are the differences between a secured and unsecured credit card?

A secured credit card requires a security deposit as collateral, usually equal to the credit limit, to protect the card issuer in case the cardholder fails to make payments. The credit limit on a secured credit card is typically equal to or slightly less than the amount of the security deposit.

In contrast, an unsecured credit card does not require a security deposit. The credit limit is determined by the card issuer based on the cardholder's creditworthiness, income, and other factors.

Secured credit cards are often easier to qualify for, especially for people with limited or poor credit history. They can be a useful tool for building or rebuilding credit. Unsecured credit cards may offer more rewards and benefits, but typically require a good credit score to qualify.