subject: Prepaid Card: Safer Than Cash Or Credit [print this page] Prepaid Card: Safer Than Cash Or Credit Prepaid Card: Safer Than Cash Or Credit
What is a prepaid card? A prepaid card is any card that you put your own money into ahead of time so you can use that money to spend on things. A prepaid card can be a debit card or a credit card. The difference between a prepaid credit card and a prepaid debit card is that on some prepaid credit cards, you can still be improving your credit as you use it, on a prepaid debit card you cannot (much like a regular credit card versus a regular debit card). However, you are not using credit from the credit card company to spend money when you use a prepaid credit card, you are using your own credit (your own money that you put into the card). Therefore, you do not run the risk of going into debt using a prepaid credit card as long as you always use the money you put in yourself.
You can check your balance as many times as you want either on-line on the website or calling them on the phone. If your balance starts to run too low, you can add money into the card anytime you want. If you are making purchases and you run out of money right there at the cashier, or wherever you happen to be, either put some of your items back, or use another means of payment (cash, check, non-prepaid debit, or non-prepaid credit) to finish paying. If you need to make a return, often times the money can be put back into your card just by swiping it like you would a regular debit or credit card. When you purchase things, select the credit option since it is not a debit card (has no pin number associated with the card). But, the credit will be from you, not from the credit card company, therefore, you will never have to pay interest of any sort.
If your money gets lost or stolen on a prepaid credit or a prepaid debit card, you can get the money back into your card. Having a prepaid card is therefore much safer than carrying cash around. Plus, with cash, you have to always be sure you have enough cash with you, which can be a lot at times, and may attract further trouble if anyone catches a glimpse of how much cash you are carrying around.
