If you want to use plastic when you purchase, you have quite a few options. In addition to the debit vs. credit card decision, you can choose among different types of debit and credit cards.
It starts to get confusing when you consider prepaid debit cards and secured credit cards. From a certain perspective, they're the same thing: they don't let you get yourself deeply in debt. However, they are very different, and you should be sure to choose the product that's actually going to do what you need. MyBankTracker.com explains the differences between secured credit cards and prepaid debit cards nicely.
In short, the fees (and reasons for fees) differ, and the effect on your credit is different. Secured credit cards can help you build credit, while prepaid debit cards do not affect your credit. There may come a time when prepaid debit cards help your credit, but we're not there yet.
Further reading:
- Using Debit vs Credit Cards in Everyday Life
- Advantages of Federal Student Loans
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