Most people associate unsecured debt with stress and frustration, but it doesn’t have to be that way.
So, if you get a secured credit card with a 0 credit limit — you must give the bank 0 to guarantee that your credit card bill will get paid.
”)— cell-phone bill that went to collection— utility bills that went to collection To understand what an unsecured credit card is, let’s first talk about an secured credit card.
When a person gets their first credit card, often they start with a secured credit card because it’s easier to get approved for, since you are putting up collateral.
But even more importantly, the bulk of insights inside this guide came from Paul’s 15-years of experience as the CEO at Golden Financial Services, where they’re renowned for their unsecured debt relief programs. The information on your credit report; such as your credit history and credit score, eligible determine if you’re eligible for “unsecured credit.” If you have a high credit score creditors are likely to issue you an unsecured loan.
If you have a low credit score with derogatory information on your credit report such as late or collection marks, to get approved for a credit card or loan, creditors may require collateral such as your car or home to be part of the agreement.
An exception to this rule is with a federal student loan.