What is the difference between a secured card and a prepaid card?
A secured credit card requires you to open a savings account that determines the amount of credit you have on your secured credit card. This savings account deposit earns interest and must remain in your account as long as you have your secured credit card account open. You must make your minimum required monthly payments before the due date since the savings account does not cover your monthly payment. A prepaid card also requires a cash payment in advance, but instead of serving as a guarantee for your credit amount the cash payment amount (or value) is stored on the prepaid card. Each transaction amount is subtracted from the prepaid or stored value amount on your card as you make purchases.
