In general, prepaid cards are an alternative to carrying cash and they are convenient to use. Prepaid cards help you develop good payment habits. You will learn to stay within spending limits. And when you decide to apply for a credit card this will pay off. Some prepaid products allow you to spend more than you have on your prepaid account so be careful. For instance, can be linked with your bank account, which gives you opportunity to spend more than you have loaded on the prepaid card. Also, if you are interested in building a good credit history, prepaid cards won’t help with that. The issuers do not report to the major credit bureaus.
Disclaimer: This editorial content is not provided or commissioned by the credit card issuer(s). Opinions expressed here are the author's alone, not those of the credit card issuer(s), and have not been reviewed, approved or otherwise endorsed by the credit card issuer(s). Reasonable efforts are made to present accurate information, however all information is presented without warranty. Consult a card's issuing bank for the terms & conditions.
All rates and fees, and other terms and conditions of the products mentioned in this article/post are actual as of the last update date but are subject to change. See the current products' Terms & Conditions on the issuing banks' websites.