What is the difference between Prepaid credit card and debit card?

My mother has bad credit and want to apply for a credit card. But somebody suggest her to get a debit card because credit card is bad for your credit score. But I heard about prepaid credit card, I think its like debit card. So please tell me if any difference between prepaid credit card and debit card.

Answer #1

There is no difference between a prepaid credit card, debit card or prepaid debit card. It is simply a play on words. The funds that YOU deposit into your card account will be your balance. Nothing more, nothing less.


Answer #2

The information above is generally correct, so I’ll just add that credit cards are only harmfull to your FICO score if they are maxed out, paid late, over the limit, etc. 35% of our FICO score is based on your debt to available credit ratio. So, you can acctually inprove your score (not dramatically, but it helps) by aquireing more credit and not using it. Cut up the cards if you feel you can’t resist spending on them. Also, make sure you find cards with no annual fee if you do this. And, your better of with high limits on a few cards than low limits on many cards, as having many cards can hurt your score, somewhat.

Answer #3

There’s not really a difference I guess, unless the card is or isn’t associated with a major issuer such as MasterCard or Visa. The debit card in general works simple–you load the card with money (via your bank or otherwise) and that money stays with the card, you can use it just as you would with a credit card but the limit is what you put in the card account–you can’t go over what you’ve put in the account. An actual credit card is where a company issues you a line of credit, you don’t have to have the money upfront, but you do have to pay the money back, usually with fees. Debit card companies generally don’t report to either of the 3 credit reporting agencies so a debit card won’t hurt your credit but it won’t benefit it either. -S

Answer #4

The difference between a Prepaid credit card and a Debit card is that a prepaid credit card can be used for internet purchases as it has a 16digit cvc code. You are still only able to spend whats on the card. Many companies claim to have prepaid credit cards.

it is simply the online functionality which separates it from debit cards. Neither will help you credit status as no credit is issued.

Answer #5

In the UK, a prepaid credit card is one where you pay money onto the credit card yourself and can only spend whatever the balance is. So say you get a prepaid credit card, it will originally have a zero balance with no spending power. You pay £100 or $100 onto the card and then you can go into shops and spend upto £100 or $100. You will not get into debt because if you don’t pay any money onto it then you can’t use it.

Answer #6

…of the raddley rayur I of the gaddely go goo!!!

Answer #7

Zanc, Debit cards can be Visa or Mastercards. These cards can be used almost anywhere a credit card can (only exception I know of is car rentals). I purchase things on-line all the time with a debit card.

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