Logic Behind Why A Attached Charge Bank Card Is Superior To Pre-paid

A lot of people believe that a pre-paid Credit greeting card is the same point as being a collateralized Credit bank card. This actually couldn’t be more incorrect. A pre-paid Visa credit card is substantially distinctive from a collateralized Charge bank card. Here are several explanations why.

1. The Credit Issue

Should you be attempting to decide among a prepaid credit card or even a secured Credit plastic card, most likely your credit rating just isn’t specifically spotless. In order to improve your credit rating, knowing the distinctions involving pre-pay credit cards and secured playing cards is very important.

If going for the right prepaid card, you’re not undertaking anything to improve your credit score. This is because pre-pay credit cards normally are not noted on the services. However, if you are given a collateralized Visa bank card, your account activity is noted on the credit bureaus, enhancing your credit.

By managing your attached Visa bank card appropriately, you just aren’t just having access to credit cards along with the positive aspects that go with holding a single, but they’re also increasing your credit rating and rebuilding your credit report.

2. The Bucks Issue

There is one area that a prepaid card and guaranteed a credit card has alike. No matter whether you available a attached charge card or a prepaid credit card, you might be going to need to submit income. That, even so, is when the similarity comes to an end.

When you give income to a prepaid card company, they credit score the amount to your prepaid credit card and then you can commit the cash you might have wear it. That’s it — finish of story. When the money is expended, you can either increase the or throw the greeting card aside.

Whenever you send in funds to open your guaranteed Credit credit card accounts, the money is put into a piggy bank and also you earn interest on that account. Then the cardboard organization extends which you spinning line of credit comparable to the volume of that account.

3. Regular monthly Assertions

When it comes to a prepaid card, there are no longer month-to-month assertions to pay for. With a collateralized Credit bank card, even so, you recruit a month to month affirmation that must definitely be paid out punctually (or it is going to affect your credit history). You’ve got the selection of paying of the bare minimum sum credited, into your market completely or anything at all among. This exercise might be documented towards the credit agencies.

4. Resorts and Automobiles

These days if you check into expensive hotels they inquire regardless of whether you use a prepaid card and a lot of accommodations and rental car businesses will not even take pre-pay credit cards as a sort of settlement. Even so, there is nothing differentiating an credit card coming from a attached Charge plastic card, which means you will use your attached card to reserve accommodations and automobile leases without any hassle.

5. Advancing

Should you carry the right prepaid card, there should never be a chance from it evolving to a credit card. Nonetheless, it isn’t unusual for any secured Charge credit card to evolve into an credit card when you have set up a payment background have established that one could be dependable with all the card.

So while a prepaid card might seem a bit like a guaranteed Charge bank card, the fact is that they are completely different in lots of ways. In order to restore your credit, then the secured Visa credit card is really the best way to go.

Categories: Personal Finance


  • Callie says:

    What is your experience with purchasing tickets with a prepaid credit card and what companies take It. Delta? American? Other online websites like Travelicity? Cheaptickets?

  • Margarite says:

    I am trying to find a good prepaid credit card for my husband. I want no fees and to be able to upload my own picture onto the card. Where can I find one?

    Also, do prepaid credit cards go on credit reports?

  • Sherry says:

    I’m looking to possibly buy a prepaid credit card here in Canada. Can anyone suggest any possible store that might sell some?

  • Sally says:

    If you got a prepaid credit card from macs or something and you want to make a paypal account, how do you make one?

  • Georgette says:

    I need to buy a prepaid credit card that I can use to order stuff online. I don’t want it to be in my name and would like to buy it at a retail store. I live in Los Angeles County, California. Anyone know where I can find one?

  • Georgia says:

    I have a family memeber whom wants to purchase for me a prepaid credit card but they want to add money to my credit card by using their bank card, is this possible?

  • Kathern says:

    I’m looking to buy Tf2 and maybe other games using Steam, but my parents don’t like buying online. I would really like to find out if I can use a prepaid credit card.

  • Carmelita says:

    So how exactly do prepaid credit cards work? You get one at your local WalMart or Rite Aid and then you give the cashier the amount of money you want put into the card? Is that really all there is to it? Nothing like a real credit card, obviously, right?

    And do these work with online transactions?

    Excuse my ignorance, I’m clearly quite a dud when it comes to this kind of stuff. Thanks in advance!

  • Cedrick says:

    I want to get a prepaid credit card, because I have no credit, and am having trouble getting it because of that fact. I want to find one that has both benefits: 1. no annual fee 2. gets reported to the credit bureau

    I have googled it and everything and am having trouble finding one with both things. If you know of one, please let me know. Also, if you know of any better way to get credit when you have none what-so-ever, please let me know. Thanks!

  • Luann says:

    Ok so I bought a prepaid credit card and everytime I try to use it it says “This information does not match your bank records.” iTunes won’t accept the card or neither will any other site! What do I do!?!

  • Elba says:

    Can I get a prepaid credit card at a store like rite aid or walmart? Im tired of asking my parents to buy stuff for me online so a prepaid credit card, using my own money, would be helpful.

  • Kylie says:

    Or Paypal. I don’t have a credit card to use and I want to get them online since they’re cheaper. Can I just load a prepaid credit card and buy Warped tickets with it?

  • Kareem says:

    I live in Canada, and was wonder if there was a way to buy and use a prepaid credit card in order to call a relative in Europe? This would definitely be the easiest method to go at it. I am looking forward to your replies.

  • Ruben says:

    I will be traveling soon but do not do credit cards and do not want carry a large amount of cash and would like to use a prepaid credit card. Would like to have one that doesn’t have alot of fees attached to it.

  • Shirley says:

    I got a prepaid credit card for Christmas with $50 on it. Will I be able to just go to the store and use it like a regular credit card, or is there anything I need to do before I can use it?

  • Josef says:

    Im having trouble getting a real credit card due to bad credit. I want to be able to restore my credit. Where are some good places that I could get one where they also send it to the three (3) leading credit bureus?

  • Luna says:

    Ok well im trying to get one for my brother, so i want to know if i go to Wal-Mart and give them $300 will they put it on the Pre-Paid Credit Card?

    How much can i put on the card?

  • Kurt says:

    What exactly is a prepaid credit card? Is it a card you can buy at a local store and load how much cash you want to load on it? And use it online or where ever you can use a credit card?

    And why do you have to put in your Social Security number?

  • Arlie says:

    I want to buy a service online but I don’t want my own name and address and phone used. I know I see prepaid Mastercards and Visas in stores, but can I use them online without giving my real info? It’s something that is not delivered to my address but is emailed to me. Can I just make up a name and address when I register the card or buy the service?

  • Candida says:

    Ok so im 18 and i live with my dad
    I dont have a bank account because i dont work im just really busy with college so i dont need money, whatever i really need my dad will buy.
    So, this is embarresing but i want to buy a breast enlargment pill its all herbal my friend used it and i know it works its not harmful
    But I have to buy it online and i know my dad will let me buy whatever i need online but hes going to ask me what it is and HOW AWKWARD will it be to say oh im buying breast enlargement cream.
    anyway first of all on his bill will it actually say thr website and everything and secondly how does a disposable/prepaid credit card work?
    thanks :)

  • Nova says:

    I live in Stratford, Ontario, Canada. I am looking for a prepaid credit card that i can use to buy stuff online… such as “members” for a game called runescape (www.Runescape.com) I’m 13 turning 14 on the 16th of march. Wondering i could get a prepaid from somewhere? if not could a parent or someone get one for me?

  • Kristeen says:

    okay so I’m sixteen and I would like to order somethings online from stores that arnt around my area if I get a prepaid credit card can I buy things online? Thanks:)

  • Hubert says:

    are prepaid credit cards good?
    im 15

    also can you make online payments w/ them?
    im f***ing 15 i dont have credit cards

  • Lance says:

    Im trying to build my credit, but when i go to sign up for a prepaid credit card it seems that they are all filled with expensive fees. Do you know of any that have no fees or at-least just very little small fees.


  • Glenn says:

    I was thinking of getting a prepaid credit card to help build my credit because I have none. I do not want a normal credit card because I don’t want to overdraw and get myself in to trouble with owing money. Are there any company’s that have few to no charges cause from what I have researched many places charge for with drawing money depositing money activating the account and so on.

  • Edwin says:

    i dont have a real credit card but i have cash that i want to spend online. Is there any stores i can go to where i buy a prepaid credit card and add the cash to it? If so what stores would have that

  • Corinna says:

    Where can I find a prepaid credit card fo help build my credit rating?

  • Nova says:

    I don’t know which would be cheaper, as in fees and stuff. Because I’ve heard that if you get a prepaid card you have to press credit at the checkout and costs you a fee.
    It would be great if you could give me a website that compares them all. (Woolworths prepaid master card and a debit/credit card)
    Please, give an explanation why!!!!!!!!!!!!!!!!!

  • Grant says:

    where can I get prepaid credit cards? Can I use that to book a hotel room and rent a car when I travel?

  • Alonzo says:

    and how long do i have to wait til im able to transfer the money from my prepaid credit card on to my paypal ?

  • Kareem says:

    I have no credit history and am trying to build it. I’ve applied for a card from my bank, capital one, even old navy. I can’t get approved for anything just wondering if a prepaid credit card is the best way or if I have any other options? I know this question gets asked a lot but please help!

  • Alysha says:

    I need a prepaid card that will will give you the expiration date, number, and all the other stuff to order something online. I don’t have to put money on it right away .. Are there any cards that do that?

  • Columbus says:

    Is there any prepaid credit cards that is RELOADABLE, and WILL INCREASE/BUIL your credit at the same time?

    I’ve tried prepaid VISA and a few others,but they were not reloadable.
    If I get a credit card from Orchard,Imagine Visa or so,
    do they require information from my job?
    I work,but since I am a exotic dancer,I only make $ money.

    Will I be able to apply for one of those credit cards still,as long as I deposit money on it and deposit money on a checking card as well?

  • Kerrie says:

    I’m looking to buy a prepaid credit card but was wondering how they work. Do they mail you one when you purchase it from the store or is it valid for use right afterwards? Does it have my name on it?

  • Precious says:

    i want to buy concert tickets online..but i heard that you cant purchase them with a pre paid credit card…anybody know??

  • Thomasena says:

    So I have $100 and I’m thinking about getting a prepaid credit card from walmart or where ever. Anyway if I do get a prepaid credit card will I be able to keep putting money in it for free? And I was told after a while they start taking money out of what you have in the prepaid credit card is this true?

  • Torie says:

    i looked at a prepaid visa at walmart
    and i think you have to have to actual card MAILED TO YOU.
    but they have a temporary one for you..

    MY QUESTION IS. if i just want to buy stuff online do i need
    the actually card mailed to me.?

    ps if the back of the card doesnt say anythig about monthly fees
    is it legit? and do monthly fees take out from the credit card amount
    or do u mail them a bill? lol one more.
    say if i didnt have enough money to pay my monthly fees
    what will happen?

  • Rosendo says:

    do you know which prepaid credit card i could use? Do you know what I need to bring. Like what info? Which card uses the least info?

  • Josette says:

    do prepaid gift cards have their own credit card number and cv2 numbers?
    basicly could it substitute for a prepaid credit card?

  • Kermit says:

    How does a prepaid credit card work
    can you use it more than once
    can you use it like a real credit card
    does it cost to put money on the prepaid credit card

  • Teofila says:

    Im 16 years old and am tired of sending money orders to buy stuff on ebay. Whats up with these prepaid credit cards and where can I get them? How do they work? I have a paypal account but have never used it.

    Are they like prepaid, and you throw them away? Like a gift card or something?

  • Tomas says:

    So I was thinking about getting a prepaid credit card. I don’t have a credit score just yet because I don’t have to pay for much. But I don’t want to get a credit card. I want to know i can handle a credit card before I get one but Is getting a pre paid credit card a good Idea do you have to put money on it before its activated? How does this whole thing work. Im almost 18 but I want to prove my parents I can be responsible with one. Should I do it? Thank.

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