Is A Prepaid Credit Card For You?

By Steven J. Talrechi

Credit is something which people often feel less than comfortable discussing. It can be hard to be approved for a credit card, especially these days. If you have yet to build a credit history or have had credit problems in the past, it can be especially hard to get approved. No matter why you are rejected, it can be embarrassing to have this happen. However, a prepaid credit card can allow you to begin building a credit history while being able to benefit from the convenience of a traditional credit card.

So, what exactly is a prepaid credit card? Well, it's basically an account that can be reloaded that is accepted any place that you might use a traditional credit card. The individual card holder will deposit money into their account before making any purchases. If you have money in your account then you are free to spend with your prepaid card. Like a traditional charge card your prepaid card will have a spending limit set which is determined by how much you have deposited into your account, and how often you are able to deposit money.

A prepaid card will give you several benefits that you can enjoy. The first is that you'll be able to develop a sense of spending freedom. With you're prepaid card you'll be able to buy anything from any store that regularly accepts credit cards.

A prepaid credit card is very helpful in keeping your spending under control. You can only spend as much as you have deposited in your account, so it is impossible to get yourself into credit card debt by overspending. A prepaid credit card is also a good way to begin learning about managing your financial life responsibly.

Additionally, a prepaid credit card will give you the peace of mind that no one is going to be able to get a hold of your credit card numbers. This way, if you're purchasing things over the phone or internet you can rest assured that no one will have any way to access your other accounts and money.

So how do you go about setting up a prepaid credit card? Well, you'll have to pay a small fee upfront when you start the account. The fee is usually ten dollars or less. There are also typically small fees assessed when you make deposits into your account. These fees are typically very small and are well worth the expense to help establish credit and keep your spending under control.

Ours is a credit driven economy ? you need a credit card to do just about anything. It's hard to do even function without one. However, if you have bad credit, are trying to build a credit history for yourself or just want to keep your spending to a limit, then you might find that a prepaid credit card is perfect for you.

About the Author:

Steven J. Talrechi is an expert on credit for more than 10 years. He writes about various topics on said field, including application for a credit card, and different credit card offers.