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I’ve never actually had a prepaid or debit card and I was wondering how to use it...

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I’ve never actually had a prepaid or debit card and I was wondering how to use it wisely without making any mistakes?

Answered on Feb 8, 2013

Updated on Nov 25, 2021

The content is accurate at the time of publication and is subject to change.

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. 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.

tags : American Express Prepaid Cards

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