Prepaid credit cards

[trickrtreat]

Are these any better than prepaid debit cards, or are they the same thing? Are there any benefits?

[SageMother]

Quote:

Originally Posted by trickrtreat Are these any better than prepaid debit cards, or are they the same thing? Are there any benefits?

A debit card accesses your checking or savings account. A prepaid card holds money in the card's account...so basically you are letting the card company budget your money, where with the debit card, you are budgeting your money. It's a subtle difference for some, but when you have to explain it to a new creditor, a prepaid card might not help your cause.

[berlinlife06]

The pre-paid credit card I think it might help you to establish credit. At least that was the way I did it, simply because I was not a permanent resident when I got my first credit card. So I got a "secure" or pre-paid credit card, and that was what open my credit.

[steve_wagner]

Prepaid cards are just another method to save your self from credit card debts...and later on, consolidation..

good enuough for short term and low budget/limit options.. however drawback is, its not worthy when emergency situation arises, perhaps then a long term regular CC will be the best option..

Regards
Steve

[sjohnson2]

I would say they do. Especially for young people just starting out, or like berlinlife06 said, for non-permanent resident's.
If you're smart about your credit & remember what it's for, then steve_wagner's post won't be relevant. If you treat credit like some sort of licence to shop, then don't even bother, you'll just get into a credit card nightmare.