It's All in the Bank with a Prepaid Credit Card
Contributed by Stephanie Litaker
Don't pay afterward, pay before with a prepaid credit card
When you think about credit cards you think about interest rates, minimum payments, spending limits, and ultimately credit card debt. But have you thought about the benefits of a prepaid credit card? Like traditional credit cards, prepaid credit cards can be used to purchase anything (within your prepaid amount of course) any where that accepts traditional credit cards. All this, plus the benefit of not having to worry about spending so much that you can't possibly pay it off in the near future.
In fact, with a prepaid credit card, you will never have to worry about a monthly payment because you've paid for your purchases in advance. Prepaid credit cards can be used to your advantage if used properly.
How to use a prepaid credit card to your advantage
Unlike a traditional credit card, where you use the trusty plastic to pay now and owe later, a prepaid credit card is already paid for - you can think of it as a debit card if you'd like. When you purchase a prepaid credit card you will "charge" it with a predetermined amount of money that you will be able to use as a line of credit with retailers. So if you buy a prepaid credit card and "charge" it with $500, you will have $500 to spend anywhere you want - as long as they accept credit cards.
So, if you know you're going on vacation and you want to ensure you don't spend too much on useless things that you'll never actually want or use, take a prepaid credit card with you and you won't do that. It'll be easier on your budget, and just think about how much less you'll be dragging back home with you.
