| There are several differences between a credit card | | | | the amount credited in order to increase your credit |
| and a Prepaid Credit Card and in order to understand | | | | score. |
| all of them one should be able to know what each of | | | | On a credit card once the credit limit is reached the |
| them means. A credit card is a card one can use to | | | | card gets declined and cannot be used until payments |
| buy something even if they do not have money in | | | | are made toward the credited amount. On a prepaid |
| the account. This means that they have a line of | | | | card the card gets cancelled once there is no money |
| credit. This line of credit can be as small as a couple | | | | left on it or the amount needed is bigger than the |
| hundreds dollars or as big as several thousands | | | | amount left on card. The prepaid one is also a better |
| dollars. A Prepaid Credit Card is backed up by an | | | | beginner’s credit card especially for teenagers |
| account where you have to deposit money before | | | | and people who want to better manage their |
| actually being able to use the card. | | | | finances. If you have a prepaid card you will think |
| In order to get a credit card you have to fill in a | | | | twice before buying something, but chances are that |
| credit card application. Then you can get approved or | | | | you will actually buy the thing if you have a credit |
| denied by the bank where you applied for the credit | | | | card even if you do not need the thing itself. A lot of |
| card. The time you need for a credit card application | | | | times people apply for a credit card to help them get |
| is shortened by the online forms, but getting | | | | out of debts, but without realizing that most probably |
| approved does not mean you can start using the | | | | they will get into bigger debts than before getting |
| money. In fact you do not even know how much | | | | the card. |
| your line of credit is. If approved you have t wait for | | | | When you apply for a credit card you need to fill in |
| the actual card to be sent to you and activate it | | | | the credit card application with all sorts of information |
| before you can actually take advantage of your new | | | | about your housing situation, employment situation, |
| credit card. The approval of a credit card application | | | | annual income and more. This does not happen with |
| depends on how good your credit history or your | | | | the Prepaid Credit Card since no one really cares |
| credit score is. If this is the first credit card you | | | | where you get the money you put on the card from. |
| every applied for it might take longer to get an | | | | With a prepaid card you decide how much money |
| answer, but it is still a shorter period of time than if | | | | you want to put on the card, but with a credit card |
| you were using the regular mail. Even when you get | | | | the credit limit can stay the same, can increase and |
| approved for a credit with a relatively small credit line | | | | even decrease depending on the activity of the card |
| it is a good idea to try and spend only half or less of | | | | as well as how you make your payments. |