• 27 JUNE, 2020 | ROBERT HOLMES 
Secure vs Unsecured Credit Cards & Loans
What is the difference between unsecure and secure credit cards and loans? This is a question that is asked very often at NC Credit Solution. We are going to start this blog with credit cards first.

What is the difference between a secure credit card an unsecure credit card?

An unsecure credit card is a credit card that does not require collateral. This is the most common type of credit cards that most people possess. You can get an unsecure credit card by having good credit. This occurs when you walk into a bank and apply for a credit card, the banker will have you fill out some documentation and run your credit and as long as you have a good enough credit score that is determined by the bank, you will leave out with a unsecure credit card with your name on it.
A secure credit card is the exact opposite. It's great for building credit if you currently have a very low credit score and is backed by a cash deposit. You can get a secure credit card by going into a bank and letting them know you would like to apply for a secure credit card to build your credit up. Most secure credit cards require a deposit that can range anywhere from $200 to $500. It really all depends on the bank you go to. The bank will give your cash deposit back on a secure credit card with a credit limit. You want to make sure to remember that you must treat your secure credit card just like an unsecure credit card by keeping the credit utilization below a 3rd and paying your bills on time. You can get a secure credit card from NC Credit Solution by clicking here. 👉

What is the difference between a secure loan and unsecure loans?

Just like a secure credit card, A secure loan requires collateral. This can be in the form of real estate, home equity, cash, savings accounts, investment accounts or a personal vehicle. This is why it is so important to maintain good credit and have a great credit score so you do not have to put up any collateral when you apply for a loan. An 800-credit score has more purchasing power than 100K. A 750-credit score has more purchasing power than 50K. You can get an unsecure loan for 50K or even 100K with just a 750-credit score! Let that sink in for a second and understand that credit is power.
A secure loan is where you go into a bank and you give them your money and the bank put your money in a CD. A CD is a certificate of deposit. The terms on the CD is great because your money earns interest while you make your monthly payments so in other words you get more money back than what you initially invested. This builds credit and also increase your credit score because you are showing the banks you can make payments over a period of time. You can get a secure loan by clicking here

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