So many people have the though as prepaid Visa cards are more or less same to the Secured visa credit card. But it is actually wrong. If you too have this thought it’s time to know the truth. Let’s find out how secured visa prepaid card get differs from the Secured visa credit card.
The Credit Factor
If you have a bad credit history and want to improve your credit then try to apply for the secured credit cards for bad credit. Although both of the cards are used in the same way your prepaid visa cards can do nothing with your credit rebuilding. Secured credit card is also known as pre paid credit card.
These cards will not be reported to the credit bureaus. But when you use Secured visa credit card and make timely payments your all credit activity will be reported and hence it provides a way for rebuilding the credit. When you use the secured card in a proper way it opens a door for getting the unsecured credit cards.
The Money Factor
This is one of the notable things that all prepaid cards and secured cards have in common. Regardless of the secured visa credit card or visa prepaid card you need to deposit some amount.
When you put the money in your prepaid account, it will be added to your card and you can start to use the card on all your purchases until the money gets finished.
Once the card goes out off cash again you can reload with the money in account. But when you deposit the hard earned money on the account of secured Visa credit card, you are actually earning the interest rate on the deposited money from the first working day itself. Your credit limit will be kept in the direct proportional to the money that kept in the account.
In the prepaid card there will not be any monthly statements to get paid for every month. But when it comes for secured prepaid visa card you need to pay the monthly statements either in a small amount due or in full payment. Your credit activity will be reported to the major credit bureaus. So be careful with your secured credit cards for bad credit.
Hotels and Cars
When you attempt to book the hotels or rent the car in companies most of them will ask you the mode of payment whether it is prepaid visa card, secured pre paid credit card or unsecured card. Few of them will not accept the secured visa credit card in their concerns. However do not panic. You can use the secured card in the same way as the unsecured card to book hotels, tickets and rent car in many places without any difficulties.
If you use a prepaid card you have no way of evolving the card into the unsecured credit card. But when you use secured credit cards for bad credit with the clear payment history there are many chances for moving forward. By this secured card you can actually prove the credit card companies that you are trusted enough to obtain an unsecured credit cards.
So what you think now? If you want to improve your credit history then obtaining the secured visa credit card can get you many benefits.