Credit Card Guide

What Is Unsecured Shopping Line Credit?

7 May 2013 by CreditCardsCo™

Many companies have developed credit cards that provide benefits to their clients or customers. Store cards often offer competitive rates as well as a host of exclusive features that help to improve the overall shopping experience at well-known department stores. Shopping cards may also have affiliate partnerships with gas stations and other retail outlets.

It is now quite common for retailers to offer store shopping credit cards to their customers. This makes sense since it is a way to provide exclusive benefits and even competitive rates on product lines that customers obviously like. This could include department stores, gas stations, and other retail establishments

Shopping cards are popular these days because they give people the exact benefits they want. If you prefer a particular store or establishment it might be wise for you inquire if they have a credit card available to their customers.

If you want exclusive benefits and highly competitive rates, you should consider getting a credit card that is affiliated with your favorite stores. Simply put, it is another way that retailers can ensure your continued business by rewarding your loyalty. If your favorite store is offering unsecured credit card, you will be able to take full advantage of their benefits without any extra costs!

Secured Vs. Unsecured Credit Card

The difference between a secured credit and an unsecured credit card is very simple.

  • Secured credit cards require a "security deposit" and usually have lower limits
  • Unsecured credit cards do not require a deposit and generally have better rates

Obviously, it is preferable for anyone to have an unsecured card because you do not have to put any money into it (outside of standard fees and charges, of course). Secured cards, however, are available to customers who are new to credit or may have a somewhat rocky credit history.

Store credit cards, or lines of credit, are often recommended for first-time credit users because it limits your ability to use credit, which lowers the risk for abuse. At the same time, it provides new credit users with the opportunity to learn how to properly use credit as the financial tool that it is. For this reason, some stores offer secured lines of credit, which require a deposit. This ensures that a new-credit user, who may not be able to afford payments, does not get in over their head. Obviously, then, there are also stores that offer straightforward unsecured shopping cards as well.

Secured Cards Vs. Prepaid Debit Cards

While it might sound like they are the same thing, secured credit cards are not the same pre-paid debit cards. Pre-paid cards only allow you to spend the amount of money that you put on the card and do not usually provide other benefits. On the other hand, secured credit cards do usually provide secondary benefits and can sometimes offer credit limits that are higher than the security deposit. Either way, if you want to use credit the way it was intended, you should be more interested in an unsecured credit card.

Shopping Card Benefits

There are many benefits to having an unsecured shopping card:

  • Competitive rates
  • Exclusive in-store benefits
  • Better customer service
  • Special rebates, discounts, and other programs
  • Limited merchandise means less use

As you can see, if you shop at a particular department store or prefer a particular brand of gasoline, it might be a good idea for you to consider getting a credit card affiliated with that specific store.

Final Word

An unsecured shopping line of credit provides a customer with a specific amount of money that they can use to shop within one particular store or a chain of stores. This works like a traditional credit card but is only available within the establishment that approved the credit.

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