# Difference between secured credit card and debit card? **URL:** \ **Category:** Factual Questions\ **Created:** [April 4, 2001, 8:15pm UTC](https://boards.straightdope.com/t/difference-between-secured-credit-card-and-debit-card/60821 "2001-04-04T20:15:11Z")\ **Posts on this page:** 5\ **Page:** 1
**Author:** ![toadspittle](https://avatars.discourse-cdn.com/v4/letter/t/c0e974/32.png) [@toadspittle](https://boards.straightdope.com/u/toadspittle)\ **Post date:** [April 4, 2001, 8:15pm UTC](https://boards.straightdope.com/t/difference-between-secured-credit-card-and-debit-card/60821/1 "2001-04-04T20:15:11Z")
Is there any difference between a secured credit card, where you have to deposit a fixed amt. in a money mkt. acct, and the debit Visa/Mastercard you get through your bank? ---
**Author:** ![Shagnasty](https://avatars.discourse-cdn.com/v4/letter/s/9dc877/32.png) [@Shagnasty](https://boards.straightdope.com/u/Shagnasty)\ **Post date:** [April 4, 2001, 8:52pm UTC](https://boards.straightdope.com/t/difference-between-secured-credit-card-and-debit-card/60821/2 "2001-04-04T20:52:35Z")
Yes. There are some important differences. You probably already understand how a debit card works. The debit card is usually the same physical card as your ATM card and allows you to make purchases much like you would a credit card. However, strictly speaking, a debit card is not a credit card. The money simply comes out of your checking or savings account and you never receive a monthly statement to pay. To confuse matters, some debit cards also have a line of credit that you can use if the money in your account runs out or if you choose to have debits go to this line of credit. If the card is used in this way, then it is the same as a regular credit card. A secured card is usually issued to people with poor credit or no credit. You must put a “deposit” down to get a line of credit. The deposit may very be just as much as your new limit. Here is the difference. The deposit is not debited when you make a purchase. Instead, you get an additional bill. The deposit simply insures that the credit card company has collateral to cover whatever bills you run up. You may not get your deposit back until you establish good credit or until you cancel the card. ---
**Author:** ![BickByro](https://avatars.discourse-cdn.com/v4/letter/b/13edae/32.png) [@BickByro](https://boards.straightdope.com/u/BickByro)\ **Post date:** [April 4, 2001, 8:53pm UTC](https://boards.straightdope.com/t/difference-between-secured-credit-card-and-debit-card/60821/3 "2001-04-04T20:53:27Z")
IIRC, even secured credit cards have limits, whereas you can deposit as much money as you want into your debit (ie checking) account. An important distinction here is between the debit-card-with-Mastercard/Visa-endorsement that you mention and the standard debit card. Those seem to be more rare these days, but I’m pretty sure they still exist. And they cannot be used as credit cards, whereas the MC/Visa type (and of course secured credit cards) can. So if your checking-account bank only issued standard debit cards, it would behoove you to look into getting a secured credit card in case of emergency or whathaveyou. Also, I don’t think ATM/debit cards can help your credit rating, even if they are endorsed by MC/Visa, whereas secured credit cards can. I think. And generally, the bank doesn’t charge you for the privilege of the bank card (at least mine didn’t), whereas one has to pay around $50 for a secured credit card. ---
**Author:** ![Shagnasty](https://avatars.discourse-cdn.com/v4/letter/s/9dc877/32.png) [@Shagnasty](https://boards.straightdope.com/u/Shagnasty)\ **Post date:** [April 4, 2001, 9:04pm UTC](https://boards.straightdope.com/t/difference-between-secured-credit-card-and-debit-card/60821/4 "2001-04-04T21:04:01Z")
> [@](#): > > \*Originally posted by BickByro \* > \*\*Also, I don’t think ATM/debit cards can help your credit rating, even if they are endorsed by MC/Visa, whereas secured credit cards can. I think. > \*\* Good points Bick. However, this point is only partially correct. If you have a Visa/MC endorsement, it probably means that your card can be used like a regular credit card and has a line of credit. This will affect your credit rating. I found this out when I got my FICO score and found out that all of my bank cards were treated as additional credit cards. Also, if you use their associated line of credit, they affect your credit rating just like any other credit card. Debit cards do not affect your credit rating at all. ---
**Author:** ![BickByro](https://avatars.discourse-cdn.com/v4/letter/b/13edae/32.png) [@BickByro](https://boards.straightdope.com/u/BickByro)\ **Post date:** [April 4, 2001, 10:38pm UTC](https://boards.straightdope.com/t/difference-between-secured-credit-card-and-debit-card/60821/5 "2001-04-04T22:38:05Z")
Very interesting, Shagnasty! I don’t believe that’s the case with my MC-endorsed Wells Fargo debit card, however. Though I can and most definitely _have_ used the thing as a credit card, my “credit line” goes only as far as the amount of money I’ve got in my checking account. I found this out empirically in my less responsible collegiate days, when I’d be down to fumes in my checking account and get declined when I tried to use my ATM card as a credit card. The type of card you describe does sound very confusing. Does the card only take money out of your separate credit line, then, and never out of your checking account?