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.