Prepaid Credit and Debit Cards

Prepaid credit cards not only add convenience to your life, they can also help to build your credit. Get the ins and outs of prepaid credit and gift cards as well as when and how to use them.

Types of Prepaid Cards

Prepaid cards come in all types and varieties. Credit and debit prepaid cards are available from major credit companies like Visa and American Express. You might pick up a prepaid Green Dot or Vanilla Visa at your supermarket or get yours from the Bank of America. Finding the right prepaid card is just a matter of knowing where to look.

Budgeting Your Money

Prepaid cards can be effective budgeting tools in special situations such as teen spending and international travel. Prepaid cards can also provide a convenient way to pay for everyday expenses such as phone charges, grocery shopping and gasoline. Some prepaid cards like the Walmart MoneyCard even let you directly deposit your paycheck onto the card so that the funds are immediately available for your use. Companies can also use the ADP Aline pay card as an easy alternative to direct deposit.

Building Your Credit

Reloadable prepaid credit cards can be an excellent way to demonstrate how you handle credit and make timely bill payments while you build or rebuild your credit history. It can also ensure that you don't go over your credit limit and overspend by having a prepaid card.

Giving the Gift of Money

Can't think of a gift idea, give a gift card. While there are pros and cons to prepaid Visa gift cards, it can be an easy alternative to a check or money. Most major retailers in store and online will take a prepaid gift card making it simple and easy. However, you might want to check out some of the best practices for a gift exchange before handing out that Dell gift card to your niece.

Using Prepaid Cards

Most of the time using a prepaid card is as simple as tying your shoe. The card can be anonymous and reloadable or you might need to register. If you need to register, you can do this online or through the phone number that is usually on the back of the card. Knowing the balance after you've made your purchases can also an area of difficulty. For a Walmart MoneyCard, you might be able to check through the mobile app. But other types of Visa prepaid cards might have a number that you can call to check your balance.

Understanding Prepaid Cards

Getting informed is half the battle. Learn how prepaid cards differ from credit cards and debit cards so that you can decide which type of card you should consider in your situation. Informative articles about prepaid cards will give you the information you need to make an informed decision about what types of prepaid cards to give as gifts as well as which types of prepaid cards can become valuable tools in your financial portfolio.