Student Credit Card and Credit Education Blog

Instead of applying for a typical credit card, in which you receive a monthly bill that reports everything you’ve purchased over the last 30 days, there’s another option that allows you to pack the plastic. Enter: prepaid credit cards. These are similar to gift cards you purchase at retail stores. They begin with a set amount, and deplete as they’re used. They can be refilled by contacting the provider via phone or electronic means.

It’s definitely a good way for younger students and teens to get started with credit cards. Even though they don’t get the true experience of racking up large bills, they still have the opportunity to own a card and use it at their local store. For some who don’t have the discipline or maturity to use a regular credit card with the appropriate responsibly, it can be a better step. Avoiding the chance to get into debt is a good thing, particularly for those who don’t understand the consequences.

Alternatively, if you’ve had credit cards for years and have had trouble with large balances or poor credit, these cards provide you with the chance to carry larger amounts of money on plastic and hopefully pay off your old balances.