When Credit Card Debt Is Secured

Credit card debt is usually unsecured. But there are some exceptions. Be sure to read the fine print of your credit card agreement.

Related Ads

Need Professional Help? Talk to a Lawyer

Enter Your Zip Code to Connect with a Lawyer Serving Your Area

searchbox small

In most instances, credit card debt is unsecured. This means that the credit card company cannot take any of your property without first getting a court judgment.

(To learn about the difference between secured and unsecured debt, see What Is a Secured Debt? And What Is an Unsecured Debt?)

However, some credit card debt is secured. This happens most often when a department store claims a security interest in all of the products and goods you bought with the store credit card. This feature will be outlined in the fine print of your department store card agreement.

 Sometimes banks also require a security agreement when you get a card, or to restore your ability to use an existing card. In doing so, it require you to post property or cash as collateral for debts incurred on the card.

Always read the fine print of any credit card agreement carefully. If at all possible, avoid cards with security agreements. 

Get Professional Help

Find a bankruptcy or debt settlement lawyer.
HOW IT WORKS
how it works 1
Briefly tell us about your case
how it works 2
Provide your contact information
how it works 1
Choose attorneys to contact you
LA-NOLO6:DRU.1.6.2.20140813.27175