Prepaid Card: Different Than Debit

Prepaid Card: Different Than Debit

Prepaid Card: Different Than Debit

A prepaid card is different than a debit card because with a prepaid card, you are putting money in there ahead of time that you are planning on spending at a later time. A debit card is linked to a main bank account. Therefore, each time you use your debit card, it draws money out of that main bank account. When you use a prepaid card, whether it is a prepaid debit card or a prepaid credit card, it draws money out of the lump of money you put in there. The amount of money you have that your debit card is linked to does not have a limit, however, the amount of money you can put on a prepaid card does have a limit. It is therefore important to know what that limit is, and if you don't like the limit, shop around since different cards will have different limits.

Using a prepaid credit card is just like using a prepaid debit card, but the only real difference is that with a prepaid credit card, you have the option with some of the cards to pay an additional fee to use the service of being able to build up your credit while you use the card! Therefore, you do not run the risk of going into debt by using a regular credit card, but you can build up your credit just as if you were using a regular credit card! You cannot do that with a regular debit card!

Also, with a prepaid debit card (and a prepaid credit card), unlike using a regular debit card, you will not have to mess with using a pin number for purchasing things. You simply select credit just as if you were using a regular credit card. Think of it as credit from you, not credit from the credit card company.

Get a prepaid card today!

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