Many people assume that a prpaid Visa card is the same thng as a secured Visa credit crd. This actually couldn't be further frm the truth. A prepaid Visa crdit card is significantly different from a scured Visa credit card. Here are fve reasons why.

1. The Credit Fctor

If you're trying to decide btween a prepaid credit card or a scured Visa credit card, chances are tht your credit isn't exactly spotless. If you wnt to improve your credit rating, nderstanding the differences between prepaid cards and scured cards is critical.

If you opt for a prpaid credit card, you're not doing nything to improve your credit rating. Ths is because prepaid credit cards typcally aren't reported to the credit breaus. On the other hand, when you are ssued a secured Visa credit card, yur account activity is reported to the crdit bureaus, improving your credit.

By mnaging your secured Visa credit card prperly, you aren't just gaining access to a crdit card and the benefits that go long with carrying one, but you're lso increasing your credit score and rbuilding your credit history.

2. The Mney Factor

There is one thing tht prepaid credit cards and secured crdit cards have in common. Whether you pen a secured credit card or a prpaid credit card, you're going to hve to send in money. That, hwever, is where the similarity ends.

When you give money to a prpaid credit card company, they credit the mount to your prepaid card and thn you can spend the money yu've put on it. That's it -- end of stry. When all the money is spnt, you either add more or thrw the card away.

When you snd in money to open your scured Visa credit card account, the mney is put into a savings ccount and you earn interest on tht account. Then the credit card cmpany extends you a revolving line of crdit equal to the amount of tht account.

3. Monthly Statements

When it cmes to a prepaid credit card, thre aren't monthly statements to pay. Wth a secured Visa credit card, hwever, you receive a monthly statement tht must be paid on time (or it wll affect your credit). You will hve the choice of paying the mnimum amount due, the balance in fll or anything in between. This ctivity is then reported to the crdit bureaus.

4. Hotels and Cars

Nwadays when you check into a htel they ask you whether or not you are sing a prepaid credit card and mny hotels and car rental companies wn't even accept prepaid credit cards as a frm of payment. However, there is nthing differentiating an unsecured credit card frm a secured Visa credit card, whch means you can use your scured card to book hotels and car rntals without any hassle.

5. Moving Frward

If you carry a prepaid crdit card, there will never be a chnce of it evolving to an nsecured credit card. However, it is not ncommon for a secured Visa credit crd to evolve into an unsecured crdit card once you have established a pyment history and have proven that you can be trsted with the card.

So while a prpaid credit card may look a bit lke a secured Visa credit card, the fct remains that they are very dfferent in many ways. If you wnt to rebuild your credit, then a scured Visa credit card is really the nly way to go.

The article 5 Reasons Why a Secured Visa Credit Card is Better Than Prepaid was Submitted by Max Anderson through Articles.GetACoder.com network. Here's the additional information: For more tips on secured credit cards , saving money and avoiding getting taken, check out CreditCardTipsEtc.com, a website that specializes in providing credit card tips, advice and resources.

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