Are there different types of credit cards?

Yes, there are.

The primary types are secured cards and unsecured cards. Each has different rules for balances, and terms.

Secure credit cards

Secured Cards are backed by cash in a savings account. You can have a credit line equal to the money you have set aside in a savings account.

These cards are a great way to build, or repair, your credit. The reason for this is secured credit cards start with your own savings account as your card balance. In this way, the credit card company (your credit union), has no overhead if you do not pay off your card on-time.

Unsecured credit cards

Unsecured Cards are loans at their most basic form.  They are lines of credit that are accessed via a plastic card.

Unsecured credit cards usually offer extras for new accounts, and existing members. Some cards offer rewards like point programs.  Some offer balance transfer rates.

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