Prepaid Credit Cards

Prepaid Credit Card or Debit Cards are designed to control spending. These cards are reloadable and limit spending to the amount previously deposited in a certain account. These cards are great for children, allowing them the freedom of their own credit card with a limit on their ability to splurge. These cards can also create a safe way to build credit. They are also good for families on a budget, allowing them to use a credit card, which is much easier than cash, without losing track of their spending.

The best part about prepaid cards is there is no APR because no money is being borrowed. There are also no late fees because there are no payments to be made. If direct deposit is utilized monthly/daily/annual fee can be eliminated on some card offers. Bad credit is not an issue on prepaid cards. Cards can be used to pay rent and utilities as well as for shopping trips and gas.

Prepaid cards are similar to bank cards but they are provided by a credit card company and are not linked to a bank account, no bank account is required. Also money can be added to these account as specified locations or via telephone. The balance available on the card can be easily checked by text message.

Cards can often hold a total of $10,000. Some cards require a minimum balance or minimum deposit.