🚨 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: