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Are Secured Cards Prepaid Cards?

by Samantha Bennet on 2014/07/29

Are Secured Cards Prepaid Cards?

Are Secured Cards Prepaid Cards?  If you come across a great deal on a  secured credit card, but are concerned about the fees charged on a prepaid credit card, do not worry because these two are not the same.

Many people mistake one of these cards for the other but are only similar to an extent.

A secured card is issued to a risky cardholder who seeks to regulate his credit and is required to deposit an amount equal to the credit limit as a “security”.  It is like a regular credit card but it requires cash security.

Best Secured Cards

On the other hand, a prepaid credit card is like a debit card, wherein you use your own money for using card services.  Both cards are reloadable.

For this reason, a secured credit card may be used to fix a bad credit, whereas a prepaid credit card may not.  If you are considering on obtaining one of these cards, you should ask and read about the fees and charges that come with the use of your prepaid or secured credit card.

Despite the notoriety of the fees and charges associated with them, they are actually reasonable and most only apply when the cardholder fails to comply or pay for their obligations on time and in full.

Both types of cards can help you limit your finances if you decide to get one of them.  Also, using these reloadable cards, you may enjoy credit card services even if you have poor credit at present or if you have no credit at all.

Best Prepaid Credit Cards

Knowing this bit of information should help you decide better whether to apply for a secured credit card or a prepaid credit card.

Getting the right card for you will also have a profound effect on your finances, so you should be careful in selecting.

So if you come across an individual who wants to know, “Are Secured Cards Prepaid Cards,” then you’ll know better.

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