If you’re looking for a credit card solution to put an end to your miserable credit history, it’s time to switch to a prepaid card. Apparently, one of the best ways to cap your extra expenditures and even start saving. Yet again, there are two types of prepaid cards – secured prepaid cards and prepaid cards. Though both are advisable and have the same features, they do come with some set of differences which makes one better than the other.
Secured Prepaid Cards vs Prepaid Cards
As just stated above, both secured prepaid cards and prepaid cards speak of the same set of features – for instance, you need to load money onto them, both of them can be used in place of credit and debit cards at a multitude of places such as at the grocery shop, a Cineplex, fuel station, a restaurant, etc. However, this is exactly where the similarities end.
In the case of a secured prepaid card, you need to make a security deposit of a nominal amount against the credit limit offered by the service provider, before you’re issued the card. The security deposit is placed in a saving’s amount until the time you’re availing the services of the card or are declared a defaulter due to excess expenditure.
When you’re using a secured prepaid cards, you’re in a way borrowing funds, as in the case of a credit card. Whatever you purchase or make payment through the secured prepaid card goes against your revolving credit limit and you must clear the dues every month to enjoy using it in the future. Once you make the payment, your credit limit, as set in the beginning revives and you can start spending again.
Prepaid cards, on the other hand, are different. In the case of prepaid cards, you need to pre-load money into the card in order to use it for making payments. Once you’ve exhausted the amount loaded onto the card, you cannot avail any credit money because there ain’t any credit limit attached to these cards. You will have to load more cash onto to the prepaid card in order to keep it functional.
Also, with prepaid cards, you don’t have to worry about making monthly payments on time and avoid becoming a defaulter. And, last but not the least, the biggest advantage of using prepaid cards is that they pose on effect on your credit history. No bad credit scored, no nothing!
Which one to buy?
It all depends on your needs and requirements. Precisely, if you’re someone who’s comfortable in paying a deposit fee and availing a credit limit with your card, then secured prepaid cards are for you. On the other hand, if you’re a shopaholic and wish to cap your expenditures, go for prepaid cards.
Secured Prepaid Cards vs Prepaid Cards
As just stated above, both secured prepaid cards and prepaid cards speak of the same set of features – for instance, you need to load money onto them, both of them can be used in place of credit and debit cards at a multitude of places such as at the grocery shop, a Cineplex, fuel station, a restaurant, etc. However, this is exactly where the similarities end.
In the case of a secured prepaid card, you need to make a security deposit of a nominal amount against the credit limit offered by the service provider, before you’re issued the card. The security deposit is placed in a saving’s amount until the time you’re availing the services of the card or are declared a defaulter due to excess expenditure.
When you’re using a secured prepaid cards, you’re in a way borrowing funds, as in the case of a credit card. Whatever you purchase or make payment through the secured prepaid card goes against your revolving credit limit and you must clear the dues every month to enjoy using it in the future. Once you make the payment, your credit limit, as set in the beginning revives and you can start spending again.
Prepaid cards, on the other hand, are different. In the case of prepaid cards, you need to pre-load money into the card in order to use it for making payments. Once you’ve exhausted the amount loaded onto the card, you cannot avail any credit money because there ain’t any credit limit attached to these cards. You will have to load more cash onto to the prepaid card in order to keep it functional.
Also, with prepaid cards, you don’t have to worry about making monthly payments on time and avoid becoming a defaulter. And, last but not the least, the biggest advantage of using prepaid cards is that they pose on effect on your credit history. No bad credit scored, no nothing!
Which one to buy?
It all depends on your needs and requirements. Precisely, if you’re someone who’s comfortable in paying a deposit fee and availing a credit limit with your card, then secured prepaid cards are for you. On the other hand, if you’re a shopaholic and wish to cap your expenditures, go for prepaid cards.
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