Secured vs. Unsecured Student Credit Cards: What’s Right for You? (2025)

If you’re a student stepping into the world of credit cards, you’ve probably seen two types: secured and unsecured. Both can help you build credit, but they work differently and serve different needs. This guide will help you decide which one is right for you.

What Is a Secured Credit Card?

A secured credit card requires a refundable deposit upfront, usually equal to your credit limit. For example, if you deposit $200, you can spend up to $200 on your card.

✅ Great for students with no credit history ✅ Lower approval barriers ✅ Helps build credit with responsible use

💡 Fun Fact: Most secured cards convert to unsecured after 6–12 months of responsible usage.

What Is an Unsecured Credit Card?

An unsecured credit card doesn’t require a deposit. The issuer approves you based on your income, credit history, or student status.

✅ Ideal if you already have some credit history or income ✅ Offers better rewards and higher limits ✅ No money tied up in a deposit

Key Differences: Side-by-Side Comparison

Feature	Secured Card	Unsecured Card
Requires Deposit?	Yes	No
Good for Beginners?	✅ Yes	✅ Yes (some student cards)
Builds Credit?	✅ Yes	✅ Yes
Approval Chances	Easier	Harder
Rewards & Perks	Minimal	More options
Risk if Misused	Low (deposit covers it)	High (can lead to debt fast)

Which One Should You Choose?

Here’s how to decide based on your situation:

Choose a Secured Credit Card if:

You have no credit history
You’re an international student or have no SSN
You want to start safe with low risk

Choose an Unsecured Student Credit Card if:

You have a steady part-time income
You’ve already started building credit (like via authorized user status)
You want rewards or cashback benefits

Pros and Cons of Secured and Unsecured Student Credit Cards

Pros of Secured Cards

Easy to qualify
Good for beginners
Helps instill good habits

Cons of Secured Cards

Requires upfront money
Fewer perks and rewards

Pros of Unsecured Student Cards

No deposit needed
Better rewards programs

Cons of Unsecured Cards

Higher risk if you overspend
Can be hard to get approved without credit history

Investopedia – Best Student Credit Cards

Can You Upgrade Later?

Yes! Many secured cards offer graduation paths to unsecured cards. You’ll get your deposit back and possibly a credit limit increase.

Final Thoughts

If you’re just starting out and unsure how credit works, a secured credit card is your safest bet. But if you have some credit history or income, you might be ready for an unsecured student card that offers better perks.

Want to build credit the smart way? Start with this guide: How to Build Credit as a Student

Also, avoid falling for myths that hurt your credit—read: 5 Credit Score Myths That Could Hurt College Students

✅ FAQS (Frequently Asked Questions)

Q1: What is the main difference between secured and unsecured credit cards?
A secured card requires a deposit; an unsecured card does not.

Q2: Can international students apply for secured cards?
Yes, many secured cards are available to international students without SSNs.

Q3: Can I switch from secured to unsecured later?
Yes, many secured cards offer upgrades after responsible use.

Q4: Which type of card builds credit faster?
Both can build credit equally, depending on how responsibly you use them.

Q5: Are student cards easier to get approved for?
Yes, student cards (both secured and unsecured) are designed for beginners with little or no credit history.

👉 Ready to build credit the right way? Compare secured vs. unsecured student cards and apply with confidence!

Secured vs. Unsecured Student Credit Cards: What’s Right for You? (2025)

What Is a Secured Credit Card?

What Is an Unsecured Credit Card?

Key Differences: Side-by-Side Comparison