secured credit cards prepaid credit cards debit cards or normal credit cards what the difference?
What is the difference in these cards? I just turned 18 and I am looking to build my credit. I don’t want to run the risk of getting in debt and my income is pretty low so what card would be best and what are the fees?
Tags: Cards, Credit, Debit, Prepaid, Secured, what is the difference
I’m not really sure what the difference beween secured and regular credit cards are, but I think it has something to do with the interest rates.
Prepaid credit cards work basically like store gift cards. You go to the bank and purchase one with ‘X’ amount of money you want on it, then it can be used anywhere it’s accepted.
Debit cards aren’t actually credit cards, and I don’t think they do anything for your credit rating. They can be issued as either a debit card or a debit/credit card (with a Visa, Mastercard, Discover logo added to the card). They are basically an easy way to access money from your bank account without having to withdraw cash or write a check. You have to be careful when using a debit card though, some places charge a fee when you use the card with your pin number. If you use it as a credit card, without using the pin number, you don’t usually get charged for it.
A secured credit card is an account where you put up the money in an account, and you charge against that. You pay your balance every month, just like with any other type of credit card. You will be able to do an account like that pretty easily, and you will build your credit that way. Google secured credit cards to find out fees, if any.
Debit cards come from your bank, and are linked to your checking account. You should definitely have a bank account with at least a checking account. The debit card is sometimes also a “check card” that has a Visa logo on it, which means you’ll be able to use it anywhere that accepts a Visa card. It takes the money you charge directly out of your checking account. They are very good to have, but don’t really build your credit up in any way.
Prepaid debit cards you can buy in CVS or Walgreens or any of those kind of places. They are only good if you don’t even have a checking account. You can use them as gift cards. They do not build your credit up in any way.
A normal credit card is where a company will extend you credit. You don’t have to give them money to secure it like with the secured credit card. You charge on the card, then at the end of the billing period, you get a bill with the total amount you’ve spent already, plus any fees and interest. You make at least a minimum payment on them in order to pay back the “loan” you’ve gotten from the company. These will build up your credit score if you use them wisely. But these are the ones you need to be especially carefult hat you don’t run up too much debt.
Prepaid credit cards do not build your credit.
Debit cards do not build your credit.
Regular credit cards are not currently available to 18-year-olds who have not already built credit.
Secured credit cards are the only type of card that is available right now to 18-year-olds who have not already built credit and will build credit.
secured credit cards:
you put a deposit down, then use it roughly like a prepaid card but there’s no fees and it will build credit, nobody is refused. Something like:
http://www.esuperfind.com/nextmillenniumcc.php?id=hra0tt16koo9
prepaid credit cards are good because you just need to be 14 to get one.
You load money into them and use them like any credit card. They come in visa & mastercard flavours. They might not build you credit but these should do:
http://www.esuperfind.com/prepaidvisa.php?id=hra0tt16koo9
http://www.esuperfind.com/prepaidmastercard.php?id=hra0tt16koo9
http://www.esuperfind.com/accountnowprepaidmastercard.php?id=hra0tt16koo9
debit cards are cards that enable you to get money out of your checking account. |If they have a visa & mastercard logo they can be used where visa & mastercard are accepted.
Credit cards require you to be 18 and you don’t need to preload them, you are using their money.
If you pay the bill when it comes, most of them won’t surcharge you but most people overspend, then they can’t pay the bill and so they’ll pay interest rates on the bill, they often get so behind that at the end of the month they can barely pay the interests so they become money cows for the CC companies and will start hating them for lending them the money!
There are many types of cards, many give you bonuses, free air miles etc.
You can get further info on all types of credit cards at
http://www.credit—card.org//id=nthaoe
And last but not least, if you have great credit rating and want to use a credit card as a status symbol, you get the black card
http://www.finance.ebookorama.com/black-card.php?id=nthhttn
also, when at the sign up page for any of these cards you can download the user agreement, it is all explained there and anyone can download it without giving out any info.