 TITLE: Secured Card or Prepaid Card: Which Is Best For You? CONTENT: Secured Card Options\n--------------------\n**Capital One® Secured Mastercard®**  \nThis secured card has no annual fee and requires as little as a $49 refundable security deposit to receive a $200 line of credit. Capital One may also consider you for a higher credit limit in as little as six months. There's no annual fee for this card and no foreign transaction fees either.  \nWhat Is a Prepaid Card?\n-----------------------\nA prepaid card is a type of debit card that's not attached to a bank account. Like a secured card, it also requires you to make a deposit before you can use it. However, you don't need to apply for a prepaid card the same way you do a secured credit card: There's no credit check, so you don't have to worry that you will be turned down.\nThe prepaid card acts more like a debit card, and the amount of money you load onto it is how much you can spend. When you pay for something with a prepaid card, the amount is deducted from your card balance. Once you've used up the amount of your deposit, you need to load more funds onto the card before you can use it again.\nYou won't incur late fees on a prepaid card because you don't ever have to make monthly payments. But you also won't build up a credit history using a prepaid card, because your usage isn't reported to the credit bureaus.\nPrepaid cards don't assess annual fees or finance charges, but there are other fees you need to be aware of. When using a prepaid card, you may be charged a small fee every time you make a purchase. Other cards may assess users an activation fee or a monthly maintenance fee. You may even be charged a fee to simply load more money onto the card. Each prepaid card is different, however. Some don't assess usage fees at all, so it's important to understand the terms before signing up for one.\n### Can You Build Credit With a Prepaid Card?\nNo, you cannot build credit with a prepaid card. Since prepaid cards only allow you to spend money that you've already deposited into an account, they are not considered a loan. And because prepaid card users aren't borrowing any money, their balances and payments aren't reported to credit bureaus. That means that prepaid accounts won't appear on your credit report or have any effect on your credit scores.\nIf your goal is to build a credit history, a secured card is the clear choice here. If you make your payments on time and carry little, if any, debt, then you'll add positive information to your credit history and likely improve your credit scores.\nBut if you simply want an alternate method of payment, a prepaid card may be a good option. With a prepaid card, there will be no security deposit, and you'll immediately have access to all the funds you place into your account. Also, you can never go into debt or incur interest charges with a prepaid card.\nA prepaid card can also be a good way to budget: The amount you load onto a prepaid card can be designated for a certain time period, like a week or a month, and once you've spent it, you are forced to stick to your budgeted limit. Some parents might choose a prepaid card for their children if they want to offer them a set allowance.\nPrepaid cards and secured credit cards look a lot alike, and can both be used to make purchases, but that's where the similarities end. By understanding the strengths and weaknesses of these two methods of payment, you can choose the right one for your needs. END