For one, there are two types of credit. There's secured credit and there's unsecured credit. So secured credit is with an institution, a banking, a bank or possibly a credit union, meaning you have a certain amount that you can use and they will back that honor it. Then there's unsecured credit, which a lot of people don't know about. This is almost essentially the same as secured credit, except for the funding is coming from you
Professor Z
@Professor42 · 4:27
You know how I advise. I said debit is always going to be the go to option because it comes from you. It's coming immediately out of your account. What you're using this card for is to pay bills. And then as soon as you pay a bill, as soon as it comes off the card, you're going to go right to the payment page and you're going to pay that bill with your debit card
Professor Z
@Professor42 · 0:39
Really quickly. You wanted to follow this up and correct the terminology that I used. Kind of went through this well. As fast as I could because of the time limit. But to correct what I did state secured credit is actually your own money. And unsecured credit is with a bank or financial institution. And you're going to want to aim for a secured credit card to build credit. Get your depths and bills reported to the credit burgers so that you can raise your credit score
Swell Team
@Swell · 0:15
Hey, thanks for the clarification, professor. On the secured and unsecured. I was definitely a little confused midway through trying to comprehend what it is you were saying, but it sounds like you the app you quoted or the website you quoted loaded is assisting in secured credit cards, which is pretty much just a glorified debit card, really, right? I mean, there's no real act of lending
Professor Z
@Professor42 · 4:40
The person that I gave an example about, it's probably a good thing because they're getting free air miles out of it. But that's just my opinion. To answer your question directly about secured versus unsecured credit, you are in layman's terms, you are right. But the very difference is that the actual secured card will boost your credit