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.

About the author:

Author: Seomul Evans

Seomul Evans is an Online Marketing Company consultant for

leading a Small Business Blog and contributor of Free Finances articles .

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