While both are very easy to be approved for due to a "cash up front" loading method, the biggest difference between the two is that secured credit cards report your payments to Canada's credit bureaus, whereas prepaid cards do not. What this means is that, while you may be able to use a prepaid credit card like any other unsecured card, you'll never be able to use it to improve your credit score. Secured credit cards, on the other hand, will slowly help your score increase through regular reporting. The other main difference is in how you load the card. Prepaid credit cards are just how they sound - users load the card with their own cash and use it much like a debit card. Alternately, secured cards require a security deposit up front to match your credit limit. This deposit is something they can use to pay themselves back for an unpaid bill, effectively reducing the risk on their end. Once you close the account in good standing, you'll get your deposit back.