Why would you get a secured card instead of a debit card?

Or are they the same thing.


A debit card - does not show on your report since its just like a check. It only shows up if you mess up and become overdrawn.


But does a secured card? And why - you're not actually borrowing money - are you?|||A person with no, little, or bad redit would get a secured card. They are trying to establish or re-establish credit. A debit card is like cash that comes from your checking account and does not report to the credit bureaus. A secured card will report allowing you to establish good payment history.|||There is a huge difference. The Federal Reserve has put in place wonderful regulations to protect customers in the event of a dispute over something paid for with a credit card. However, the Fed does not have jurisdiction over debit cards, so, you are at the mercy of your bank. If they don't want to take the trouble to help you, there's nobody to complain to and you're screwed.|||"you're not actually borrowing money - are you?"





Of course you are, the secured deposit is collateral just like your car is collateral on a car loan. Cash is an asset just like a car. A secured card for some people is the only way to establish or re-establish positive credit history, a debit card does nothing to help your credit file.|||To get a secured card , you put up a sum such as $500 . It shows up on your credit report and doesn't look very good. But, it is a way to get a card and may be a way to get a credit card.