What do you think about prepaid credit cards?
By brian_s
@brian_s (570)
United States
June 5, 2007 1:37pm CST
There are some credit cards that actually work like debit cards. You deposit money into the account, and then go use your card.
As long as money is left, you can continue using it. If you run out of money, your card will simply be declined. There is absolutely no chance of spending more on the card than you can afford, since you have to prepay it before spending. In this way your credit rating will only go up, and you won't have massive debt.
I think that this is the perfect solution for people in a few situations. I think it is best for:
-children (who should have a card, but may spend too much with a normal card)
-people who want to live on a budget but find it hard (it is extremely easy with these... just put in what you can spend, and don't spend more until the next month)
-people with poor credit (it is easy to get because you can't default, and if you use it you will build your credit)
What do you all think?
2 people like this
3 responses
@Schnorrawaggle (688)
• Austria
6 Jun 07
I think this is a good thing, using this card people can't spend more than they have and don't end up in debt. They might think twice about a purchase. It won't be oh I'll pay it off someday. I know lots of people who should have one of these instead of a regular credit card.
I know people who end up bankrupt because of credit cards.
If you don't have it don't spend it, is good advice.
1 person likes this
@castleghost (1304)
• United States
6 Jun 07
I actually like the idea of prepaid credit cards. As you point out prepaid credit cards would be excellent to use with children. I like the idea of handing them a prepaid credit card rather then just cash. A Prepaid credit card could be useful to use on the Internet as well. For all of these sites that ask you to please give them your credit card information.. I would much rather use the prepaid credit card then my regular credit card.
1 person likes this
