For someone who tends to look down on credit cards and debt, I've found secured credit cards are the way to go. You load them up with money and can't spend more than you put on them. It's a smart way to build credit, or keep your credit looking good if you're a bit older and have a problem controlling spending. I don't believe in debt, but we all need credit.
My boyfriend has one of these and it's great. His credit was VERY POOR and now it is POOR borderlining GOOD. We've been working well for us. Hoping to be able to get him a normal credit card to build even more credit faster.
Sorry, are these credit cards the same with the Reloadable Prepaid Credit cards? Honestly, this is the first time for me to use a real credit card because in the past I always rely on the power of the prepaid cards. Recently, we had this caravan in our office that helps employees get their own credit cards easily with the help of the company. I've took the chance to get a hold of one and luckily I was given an Amex. My plan is actually to use the card for business purposes and for collecting rewards, I'm not sure if this is the best way to go but then I would like to experience having one at least.
Secured credit is a contradiction in terms. Credit means you are getting something of value with the promise to pay back, strictly on your word. "Secured" credit card is the equivalent of writing a check against your own money or owned goods. You already paid for what you pledge as collateral and that is NOT credit. If you give the financial institution $1000 and then they "let" you take your own money back for a fee, that is not credit. Question the company why they calling it a "credit card" in first place. It really is debit card. Ask them why them the difference between between a "secured credit card" and a "debit card." The fee structure between them is astronomical.
I have never tried credit cards even those that are called secured credit cards. If you have an option to load money on the card and spend from your card balance, it is more of a debit card. In debit card you spend from the balance, once balance is used you cannot spend more.
