The credit card company holds your deposit in a savings account and will use it to cover the balance if you default on a monthly payment.An unsecured credit card just means that you don’t need to provide a security deposit, and is the type of ‘normal’ credit card that most consumers are familiar with.If you’re hunting for a credit card in the noble pursuit of improving your credit, remember these two key ideas: We really recommend that you first try for an unsecured card.
It’s ideal for everyone with no credit history, bad credit history, and/or recent bankruptcies.
The penalty for going over your credit limit a second time, however, is severe: your card will be cancelled.
It’s also important to point out that Refresh Financial Secured Visa does charge every month that you don’t use the card, so it’s only a good choice for cardholders who are going to use it regularly.
If you have bad credit history, one of the fastest and most effective ways to change that is by using a credit card responsibly.
If you make sure to pay the balance on time every month and keep your credit utilization below 30%, you can restore your credit score faster than you might think.