A Closer Look at all the Types of Credit Cards & How They Work

Credit cards are a significant part of how we purchase goods and services in the United States.

What Types of Credit Cards and Payment Cards are Available?

Each of these card categories has distinct traits and, depending on your financial situation, some of these credit card types will be more advantageous for you than others.

Secured Credit Cards

A secured credit card is a type of credit card that requires you to put down an upfront cash deposit, usually equaling the amount of your credit limit.

How Does a Secured Credit Card Work?

Secured credit cards work as the first step for young adults or people who don’t have an established credit history to have access to credit. 

Unsecured Credit Cards

Unsecured cards, the most common credit card type, often represent what people want when applying for a new credit card.

How do Unsecured Credit Cards Work?

Unsecured credit cards represent a standard financial product available through banks, credit unions and other service providers.

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