credit cards

It’s very likely these 3 cards have left you wondering how they’re different. By definition, there is rarely any distinction between debit, prepaid and credit cards. They are all cards (usually plastic) issued by financial institutions which enables the holder to withdraw money or to make purchases, cost of which is charged directly to the holder’s monetary account.

Let’s take it gradually…


This is a card that lets you make secure and easy purchases online and in person. Money on the card is drawn directly from your bank account, meaning you’re not borrowing — the money on your debit card is yours, and you can use it to access your cash. That is to say a debit card is only used if the account holder has money in the bank. This card requires users to pay directly, as the card uses money from the holder’s account for purchases or ATM withdrawals.


A prepaid card is a card that you also use when making purchases. Yes, it appears to be the same with a debit card, but it goes further. Prepaid cards have a monetary value stored on the card itself, not an account managed by a bank. The purpose of this is to limit one’s spending. When you decide to make use of a prepaid card, you determine how much money you want to “recharge” it with and the issuer opens an account for you, in which your funds get deposited.


A credit card lets you borrow money from a bank or other issuers. with the understanding you’ll pay back at a later date. It lets you borrow funds from a pre-approved limit to either withdraw or pay for purchases.The limit is decided by the institution issuing the card based on your credit score and history. Credit cards help to build one’s credit and cover emergency costs. However, it can also lead to debt if a user takes from it more than they can comfortably repay on time. Two types of credit cards exist — secured cards and unsecured cards. Secured credit cards require a security deposit, which serves as collateral if you miss a payment. Unsecured credit cards are the opposite. It doesn’t require a security deposit when you apply, and they typically offer better terms. Recently, this has been introduced in Nigeria by the guys at O3 Capital. Those with a poor credit history may not qualify for an unsecured card, but they may have better luck applying for a secured card. No matter which type of card you’re considering, it’s best to look for one with minimal fees.


1. All 3 cards let you make secure and easy purchases online and in person.
2. Prepaid cards are, strictly speaking, not linked to bank accounts. This is in contrast with a debit card.
3. Credit cards let you pay for your purchases later. In simple terms, you are borrowing money from the credit card issuer, having it in mind that you will pay back the money at the end of your statement period.
4. While regular debit cards perform a real-time transaction from your bank account every time you make a purchase or ATM withdrawal, prepaid cards require you to load the card in advance via cash, cheques, online transfers or a visit to a retailer.
5. Prepaid debit cards are a good option for persons with no access to a bank account but don’t want to use cash for their online purchases.
6. While credit cards help to build one’s credit, debit and prepaid cards don’t.
7. Unlike credit cards, debit and prepaid cards don’t typically offer reward points on purchases and general usage.
8. You don’t necessarily need to have a regular bank account to get and use a prepaid card.
9. Any of these cards may have the logo of Mastercard, VISA, Verve or any other card scheme, and can be issued by a bank, and even non-banking financial institutions like O3 Capital.

Having read to this point, it should be easier for you to pick the right type of card for yourself. If you consider yourself fit for a credit card, or just need one in case of emergency situations, you can apply for any of the credit cards offered by O3 Capital Nigeria Limited.

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