The Secured Card is reported as revolving credit whereas the Credit Builder Loan is reported as an installment loan.
Revolving credit is a credit account with a maximum limit that you can borrow from as you please. You can use funds from a revolving credit account to make purchases or pay bills. You’re expected to pay back the amount of money you withdrew, plus interest. You can either make a single payment in full or minimum monthly payments to cover the amount you borrowed. Repaying a borrowed amount makes that amount available to be borrowed again at a later time.
Unlike revolving credit, an installment loan is paid in fixed payments over a specific period of time. Installment loans usually have a monthly or biweekly payment that includes both the principal and interest portions of the loan. When your loan is repaid, the account is closed and is no longer considered active.
Having a mix of both installment and revolving credit has a positive impact since your credit mix determines 10% of your credit score. Credit bureaus use credit mix as a factor when calculating credit scores because it indicates whether the user can manage various accounts over time. A healthy credit mix, along with a history of on-time payments, tells borrowers that you have the financial management skills to handle a variety of credit products and make regular payments towards them.