Why Use a Prepaid Credit Card?

Prepaid Credit Cards, why you  might need one…

Why would anyone want a prepaid credit card? Isn’t the point of a credit card having the ability to buy something when you’re short on cash?

Yes, that’s one reason why people carry credit cards, and it’s also one of the reasons why so many are in debt over their heads today. Those credit cards made it just too easy to over-spend.

Now that the country is in the midst of an economic crisis, some consumers have lost the ability to carry a standard credit card, while others have decided that not owning access to quick and easy credit will force them to stay within their budgets.

That’s fine, but we’ve turned into a country that functions on credit. If you don’t have a credit card, there are many things you just can’t do.

Have you ever tried to purchase something on line without a credit card? If all you have is cash you’re completely out of luck. If you have a checking account you can purchase from some sites, but not others. And when you do use a checking account, the merchant will wait until your check clears the bank before shipping your merchandise. That can take up to a week.

How about buying gasoline after hours? You can pull into a convenience store or filling station that’s closed and still use the pumps – but only if you can pay with a credit card.

A credit card also allows you to reserve a rental car, an airline flight, or a room at a hotel.

But personal convenience isn’t the only valid use for a prepaid card.

Parents and business owners are also finding prepaid cards to be useful tools in money management.

Sending your child off to school or on vacation with a pre-paid card gives them a budget while offering both convenience and safety. Lost or stolen cash is just gone. A lost or stolen credit card can be quickly cancelled and the money saved.

And, in case of a financial emergency, you can easily add more money from your checking account or even from one of your own credit cards.

Business owners who furnish travel or entertainment funds to employees enjoy two benefits: Security and record-keeping.  When carrying a prepaid card the employee can’t over-spend company funds. And, most cards offer free online access to transaction information so that business owners can see exactly when and where funds were spent. This is a valuable tool both for keeping track of employee activity and for keeping accurate records for tax purposes.

Author: Mike Clover


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Disclaimer: This information has been compiled and provided by CreditScoreQuick.com as an informational service to the public. While our goal is to provide information that will help consumers to manage their credit and debt, this information should not be considered legal advice. Such advice must be specific to the various circumstances of each person's situation, and the general information provided on these pages should not be used as a substitute for the advice of competent legal counsel.