Prepaid debit cards and secured credit cards differ from the usual credit cards that are on offer. The difference being that both these cards need the customer's money as a deposit. The prepaid debit card is one, which on deposit of a certain amount by you is provided to you. The background checks or referential checks to provide you this card are almost nothing. This is a boon for those who live on the wrong side of the law or those who stay on as immigrants without proper papers. This debit card is a bank in itself wherein they provide facilities usually not given to the people who live on the other line of the society.



The transactions are not notified to the credit authorities and therefore, it has no bearing on credit ratings. There is interest charged on this card, the reason being the money that you swipe around is your own money. So naturally, this is a card for those who cannot get a credit card or a banking facility through usual means – people who do not have the right kind of papers.

Secured credit cards are a different kettle of fish altogether. They are exclusively for customers who want to soar up their credit ratings. This is for people who have their credit ratings on the downhill and need to hike it badly and fast. The secured credit cards are provided after you pay a decent deposit amount and that particular amount is kept as your limit in terms of credit. You can use that amount to make purchases or transactions and achieve your goal of good credit ratings. Of course, it is not like you just get a secured credit card by depositing some money and start purchasing and pay it immediately and you are fine. It does not work that way. You don't get a secured credit card just to spend and show the numbers in the records.

The records do not show how you purchased and repaid, it doesn't give you brownie points. The idea of the credit bureau in awarding or negating points is through your restraint. The amount of tolerance you show and the judgment you practice while making use of the money you have taken as credit. This goes a long way in securing you good credit ratings. There are no short cuts in making a good name. It is always about good judgment and right calculation with solid ethics. As with many things in life, to get a bad name is the easiest thing to do. Just like getting a bad credit rating.

Secured credit cards are sought for the sole purpose of getting good credit ratings. The way to go about it is what would determine if you would reach the goal. It is advisable to do the saving before you get a secured credit card. Yes, make sure you gather a good amount that would look real decent when you deposit it as the deposit money for securing a secured credit card. Once you have done that just wait and watch. Do not go near it. You do not need to transact to show you are acting well. The best thing to do is to stay away from that money. Money not spent is money earned. The money not spent on a secured credit card equals to good credit rating from the credit bureau. That is exactly what you came for when you secured a secured credit card.