| Feature | Secured Credit Cards | Unsecured Credit Card |
| Collateral Requirement | Requires a security deposit as collateral (usually refundable) | No collateral or deposit required |
| Credit Limit | Typically equal to or based on the deposit amount | Bases on the card issuer’s evaluation of the cardholders credit worthiness |
| Approval Criteria | Easier to qualify for, often used to build or rebuild credit | Requires a higher credit score and established credit history |
| Purpose | Mainly for people with limited or poor credit history | Designed for people with established credit |
| Interest Rates | Can have higher interest rates, but varies | May offer lower interest rates depending on creditworthiness |
| Credit Building | Helps build or improve credit with responsible use | Maintains or improves credit with responsible use |
| Rewards and Benefits | Limited rewards, if any | Offers more rewards, perks and benefits like cashback points |
| Upgrade Potential | Can transitioned into unsecured credit card after responsible use | No need for an upgrade, already a standard credit product |
| Fees | May have annual fees or another fees | Fees vary, often lower for those with good credit |
