In today’s world, credit cards have become a universal means of payment. They are convenient, offer rewards, and can help build credit scores. However, not all credit cards are created equal, and it’s essential to understand the difference between secure and unsecured credit cards.
A Secure Visa® Credit Card is a credit card that requires collateral in the form of a deposit equaling the line of credit.
Core Benefits Georgia Heritage FCU Offers for Secure Visa® Credit Cards:
- Low Annual Percentage Rate.
- Flexibility and purchasing power.
- Earn 1 point for every $1 spent in net retail purchases using your Georgia Heritage FCU Visa® credit card through the Choice Card Reward Program.
On the other hand, Visa Credit Cards do not require a deposit equaling the credit limit. These credit cards are issued based on the cardholder’s creditworthiness, income, and other financial factors. The interest rate charged for these types of cards is based upon the applicant’s credit score.
Key Benefits Georgia Heritage FCU Offers for Visa® Credit Cards:
- Competitive pricing.
- Interest will not be charged on purchases if you pay your entire balance by the due date each month.
- Earning 1 point for every $1 spent in net retail purchases using your Georgia Heritage FCU Visa® credit card through the Choice Card Reward Program.
Additional restrictions apply, please call us at (912) 236-4400 for more information.
Now let’s dive into the overall benefits of Secure Visa® Credit Cards vs. Visa® Credit Cards.
Building or Rebuilding Credit
If you are new to credit or trying to rebuild your credit after financial setbacks, a secure credit card is an excellent option! Secured Visa® Credit Cards report to the credit bureaus, just like regular Visa® Credit Cards, and can help you build or rebuild your credit score. Since you provide collateral in the form of a deposit, the issuer of the secured card is taking less risk. This makes it easier to get approved for a Secure Visa® Credit Card compared to a regular Visa® Credit Card.
Lower Interest Rates
Secure Visa® Credit Cards often come with lower interest rates than regular Visa® Credit Cards. Since secured credit cards have collateral to fall back on, issuers are more likely to offer lower interest rates to encourage cardholders to make purchases and carry a balance.
Both Secure Visa® Credit Cards and Visa® Credit Cards have their benefits, now the question is just deciding which is best for your needs! At Georgia Heritage Federal Credit Union, we offer BOTH types. Contact us today to learn more about how we can help you make the most of your finances.