Jump to content

Secured Card == Debit Card ?


Recommended Posts

So I currently have a debit card with a mastercard logo from my credit union. Is this a "secured card"? If so, will this help me build credit? Because I've used it for a couple years and I don't think it's affected my Credit Score and it's not on my Credit Report.

If a debit card isn't the same as a secured card, what's the difference?

Link to comment
Share on other sites

Nope, it won't report on your credit.

A debit card works like if you were writing a check - it takes money directly from your bank and pays the person and that's the end of the transaction.

A secured card works like a normal credit card except that your deposit acts as the credit line (and, unlike your debit stuff, you can't remove that money from the account any other way - unless you close the account). When you make a charge with your secured card, the bank pays the store and then you pay back the bank (plus a fee).

Most secured cards work just like normal credit cards...you have a revolving line, even though your deposit is the line. So they report on your credit (most of them do, that is).

Link to comment
Share on other sites

Guest
This topic is now closed to further replies.
 Share

×
×
  • Create New...

Important Information

We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue.. For more information, please see our Privacy Policy and Terms of Use.