 TITLE: Secured Card or Prepaid Card: Which Is Best For You? CONTENT: What 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. END