Quick Answer: Why Do People Use Prepaid Credit Cards?

Primarily three reasons: prepaid cards are easier to get approved for, in some cases prepaid cards can be cheaper than a debit card tied to a checking account, some people use prepaid cards to manage their money without going into debt (i.e.

one card for spending money, another card for bills, etc.)

What are prepaid cards good for?

Because prepaid cards are associated with major card networks – Visa, MasterCard, American Express and Discover – they can be used anywhere debit cards can: to buy groceries, gas up your car, even pay bills online.

What can you use a prepaid Visa card for?

The all-purpose Visa Prepaid card is a reloadable prepaid card that you can use to withdraw cash, pay bills, or make purchases at participating retailers and service providers, in-person or online.

Does a prepaid credit card affect your credit?

There’s No Credit Effect — Good or Bad

Prepaid cards, unlike secured credit cards, aren’t reported to the three major credit reporting agencies, so using one won’t affect your credit score. That means you can’t use it to help build your credit as you would with a credit card (or a secured credit card).

Do prepaid cards have statements?

Many prepaid card providers don’t send monthly paper statements, but you can go online to get a list of your recent transactions free of charge.