Unsecured Credit Card comprises 70% of the total credit card market. In this type of card no security of any savings account is required for accessing the same. The unsecured credit cards are a bit difficult to access for the person who don't have any credit history or have a bad one because in such cards no deposit are kept as a form of collateral. Here the credit card is advanced on the basis of perception of the company on the customer's ability to pay off the debt.
Unsecured Credit Cards can only be accessed by a person only after they have established a good enough credit history/rating. This can be done by him only after establishing a commendable credit history through a secured credit card. Thus for the new comers and those with a bad credit history need to first apply for the secured ones. This gives the card issuing company in revaluing his debt payment performance. If the performance of the customer comes out to be as per their standards then they might offer unsecured credit card to them.
Unsecured Credit Card is considered to be the best among the whole lot because of comparatively less restrictions than the secured ones. While going for a unsecured credit card, one should compare the different credit card offers and the fee structure of them through the different credit card comparing websites. The traits that a credit card customer should verify are :-
- Annual Percentage Rate (APR) are desired to be as low as possible
- Annual fee is done away with or not
- Incentives associated with the specific credit card
An example of unsecured credit card is given below:-
Chase Freedom Visa Card
It offers a cash back incentive at a rate of 3% on total purchase of goods and services from grocery stores, restaurants and gas stations. Purchases from other than these stores give an incentive of cash back at the rate of 1% on every dollar spent. The APR associated with such a card is presently at 14.24%. An introductory offer is also associated with Chase's unsecured credit card which offers a 0% APR for the first 6 months after application.
For more information on unsecured credit card you may surf through newhorizon.com and consumerlawpage.com.