When it comes to choosing a credit card, there are a wide array of options you can choose from. Do you want to earn cash back or miles? Do you want a basic card or platinum card benefits? And last but not lease, do you want a card which is secured or unsecured?

With a secured card, the cardholder deposits a certain amount of money with the creditor which they can then borrow against. In the event the cardholder is unable to payback the charges, the bank will simply keep the deposit. With an unsecured card, the cardholders doesn’t need to put up a deposit nor any other collateral. Instead, the bank grants them a spending limit based on the individual’s creditworthiness.

In addition to the above two options, there are also charge cards. They are a form of unsecured lending where the cardholder doesn’t need to put up any collateral, but all charges are due in full each month. Charge cards used to be very popular, but today the only ones on the market are the American Express Green card, Diners Club card, etc. This is because most people prefer the flexibility of unsecured credit cards instead. However, for those with credit problems, then a secured card can be an excellent way to go.