In today’s video, we look at debit cards vs. secured credit cards. Some people think that secured credit cards are better than debit cards because they can build credit while eliminating the opportunity to go into credit card debt. Here’s what I think about secured credit cards.

Secured credit cards are very similar to normal credit cards in several ways. You can build credit and even get some rewards. However it’s different in one major way: secured credit cards have a security deposit. The security deposit is to protect the issuing bank, just in case the user isn’t able to keep up with the credit card payments. If you apply for a secured credit card, the security deposit is taken out of your account prior to getting to use the credit card.

The security deposit actually becomes the credit limit for the credit card. That way the user can never purchase more than what the security deposit could cover. However, just because there’s a security deposit doesn’t mean that you’ll never pay interest on the balance of a secured credit card. Because they have a payment date just like every other credit card. If you neglect to pay the minimums on the balance, between 90-180 days later, the issuing bank will use your security deposit to cover your balance and return what’s left.

Ultimately, secured credit cards are better than normal credit cards because they’ll never allow you to spend more than your security deposit so there’s no chance of getting into massive amounts of credit card debt. However, I still don’t think they’re as good as debit cards because having a secured credit card means that you’re still trying to build credit so you have the opportunity to borrow money if needed. The problem is it continues the belief that you need a credit score to live. My wife and I are proof that you don’t need to because we’ve not used a credit card in over 6 years. You can live without a credit score and without debt!

Timestamps:
0:00 - Intro
0:21 - What is a Secured Credit Card?
0:51 - How a Secured Credit Card Works
2:00 - Is a Secured Credit Card better than a Debit Card?

#calebbale #securedcreditcard #debitcard

Hair PNGs used in this video:
https://www.freepnglogos.com/images/h...
https://www.freepnglogos.com/images/h...
https://www.freepnglogos.com/images/h... Notes and Resources 📒

⚡️MY FAVORITE DEBIT CARDS⚡️
🎬Juno Cashback Debit Card Review:    • The METAL Debit Card with 5% CASHBACK...  
🎬Discover Cashback Debit Card Review:    • Discover CASHBACK DEBIT Card Review /...  

⚡️BEST FINTECH REVIEWS⚡️
🎬Best Budget Apps!    • BEST Budget Apps of 2022! Everydollar...  
🎬Best Cashback Debit Cards!    • Best CASHBACK Rewards Debit Cards of ...  
🎬Best Bank Accounts to Fight Inflation:    • BEST Banking Interest Rates I'm Using...  

⚡️GET FINANCIAL COACHING⚡️
If you need some help with getting your debt worked out, set up a session with me. I legitimately want to help. www.balefinancialcoaching.com

⚡️FOR INQUIRIES⚡️
For business and coaching inquiries, hit me up:
[email protected]

⚡️CHECK OUT THE BLOG⚡️
http://balefinancialcoaching.com/blog/

⚡️DISCLAIMER⚡️
Do your own research. My content is intended to be used and must be used for informational purposes only. It is very important to do your own analysis before making any investment based on your own personal circumstances. You should take independent financial advice from a professional financial advisor when considering your retirement options. Though I teach financial principals, I am not an investment advisor and none of my advice constitutes legal, tax, or investment as a professional. Everything I share is based on my own research and is intended for your benefit. Any financial technology reviews are intended for your benefit. Research each product yourself to determine if they are right for you.

⚡️DOWNLOAD MY FREE KINDLE BOOK⚡️
Graduated and Clueless: How to live like an adult when life is confusing
https://www.amazon.com/Graduated-Clue...

⚡️EQUIPMENT I USE⚡️
This is the equipment I use with Amazon affiliate links. If you choose to purchase anything using these links, you will not be charged anything financially, but will be able to support my channel in a small way!

Sony A7S II: https://amzn.to/38PM8Sl
Neewer 660 LED bicolor lights: https://amzn.to/3o4KB1a
Rokinon 12 mm lens: https://amzn.to/38Qpauy
Magnus VT 4000 tripod: https://amzn.to/3aXmNsj
Rode Video Mic: https://amzn.to/3b0nfWI