Unsecured Credit Card
A standard credit card that doesn't require a deposit. Credit is extended based on your creditworthiness. Most credit cards — including rewards cards — are unsecured. Generally requires fair to good credit (580+) to qualify.
Related guides
- Full credit & FICO® glossary
Browse all defined terms by category.
- Secured Credit Card
A credit card that requires a cash deposit as collateral. The deposit typically equals your credit limit. Secured cards are designed for people with no credit or poor credit and report to the credit bureaus just like regular cards, making them effective credit-building tools.
- Credit Limit
The maximum amount a lender allows you to borrow on a revolving credit account (credit card or line of credit). Exceeding your credit limit can result in fees and score damage. Higher credit limits (with low balances) improve your credit utilization ratio.
Frequently Asked Questions About Unsecured Credit Card
What does Unsecured Credit Card mean?
A standard credit card that doesn't require a deposit. Credit is extended based on your creditworthiness. Most credit cards — including rewards cards — are unsecured. Generally requires fair to good credit (580+) to qualify.
Is Unsecured Credit Card important for my FICO® score?
Understanding Unsecured Credit Card helps you manage your credit profile more effectively, which in turn supports a stronger FICO® score.