🚨 Credit Confusion Alert: Secured Cards vs. Prepaid Cards
A lot of people think secured credit cards and prepaid debit cards are the same thing, but they work very differently, especially when it comes to building credit. Prepaid Debit Cards - You load your own money onto the card - You spend until the money runs out - No borrowing involved - Not reported to credit bureaus - Does nothing for your credit score Think of this like cash with a card. Secured Credit Cards - You put down a deposit, but you’re still borrowing money - You must pay the balance back every month - Reported to Experian, Equifax, and TransUnion - Builds or repairs your credit Think of this as credit training wheels. If your goal is to build or rebuild credit, a prepaid card won’t help. A secured credit card is one of the safest and fastest ways to prove you can manage credit, as long as you: - Pay on time - Keep balances low - Avoid carrying interest Use it correctly, and it opens the door to better cards, higher limits, and more financial opportunities. Drop a 💳 in the comments if this finally made it click.