Unsecured Credit Cards Among the borrowing instruments, the most common type of a credit card is the unsecured one. Unlike auto loans, mortgages, and other secured loans, the unsecured credit card is not secured by collateral. In other words, the instrument is not directly connected to some property that the credit card provider can seize in case the card holder fails to meet his or her financial obligations. The issuers of unsecured credit cards have to resort to other means such as garnishment and the courts as to collect the unpaid debt. In contrast to , and other secured credit cards, the unsecured ones do not require that the holder makes a deposit or a down payment of the latter. The card comes with a higher limit but one’s credit rating is a decisive factor in view of approval. When applying for an unsecured credit card, the provider will request a credit report from one or more of the major credit bureaus (e.g. TransUnion). Clients will qualify for this type of card depending on their earnings potential, financial strength, and credit history. In most basic terms, the unsecured credit card is a pre-approved loan with an interest rate attached to the account balance. These cards come in various kinds such as travel credit cards, gas cards, rewards cards, and every other type that is different from the secured credit card. In contrast to the latter, the unsecured cards do not require that the holder puts money up front and thus increase his or her purchasing power. A beneficial feature of unsecured credit cards is the balance transfer that helps manage credit by consolidating debt for lower interest. Some credit cards are offered with zero percent introductory rates on balance transfers and purchases over a certain period (up to the first fifteen months) of holding the card. A large variety of unsecured credit card products are offered by the banking institutions in Canada. The Gold MasterCard Credit Card featured by MBNA, for example, comes with a zero annual fee and 9.99 percent interest rate on cash advances, purchases, and balance transfers. There is no introductory interest rate and the grace period is set at 21 days. Likely applicants are residents of Canada who posses a credit card file and are of the majority age. In addition, they should have a total annual income of at least $35,000, and their credit history should be clear of delinquent accounts as well as bankruptcies. Another good offer for an unsecured credit card is advertised by Capital One. The Capital One SmartLine Platinum MasterCard goes with no annual fee and a low interest rate of just 5.99 percent on balance transfers and purchases. This financial product comes with plenty of beneficial features such as balance protection, Baggage Delay Insurance, extended warranty, purchase assurance, Car Rental Collision/ Loss Damage Waiver, and others. The credit card is a good choice for individuals who have excellent credit, combined household income of over $40,000, moderate monthly spend, and monthly balance of over $3000. The typical card holder wants to save money on interest and carries a balance on a monthly basis.