A prepaid debit card can generally be utilized as “starter”  card if you believe you are not ready to handle a credit card.

Although normal credit cards help you buy things with money that you do not have inside your bank account, and prepaid credit card is limited to what you have in your checking account. 

Why Debit Cards Are Becoming More Popular

The good thing about prepaid cards is that they will not get you into debt.  Since their credit limit decided by how much money you “load” onto your card, you don’t have to worry about over spending.

A prepaid debit card is basically a  tool to help you purchase things at the store with a card with the Visa, Mastercard, or American Express logo on it.   Plenty of people who have good credit will use a prepaid debit card to help keep them on track with their budgets, so its not just for people with bad credit.   They can be a great tool for not just buying the things you need, but can help you maintain your budget, and if you get one with a credit builder function, it can help you rebuild your credit.

Can Prepaid Debit Cards Help Rebuild Your Credit?

These prepaid cards are a good option for people with poor credit scores because they can help them slowly repair their score over time. There are plenty of people out there who have made mistakes when it comes to taking on too much credit, so there is no reason to feel ashamed about this problem.

Not all prepaid cards are good for rebuilding credit.  You must look for one that SPECIFICALLY states it will report to at least 1 of the credit bureaus.  This option usually comes with a small fee, but if you need to rebuild your credit, its an absolute MUST that you get this option.

Once you start dealing with your credit problems instead of ignoring them on a daily basis, you will notice that you feel much happier about your situation and are able to live with a lower amount of stress. Anyone who has poor credit should look into these cards as a viable option because it is a great way to get all of the benefits of a credit card without actually going deeper into debt.

At the end of the day, you are going to have to decide if these cards are right for you. Different people are going to find that different types of financial instruments work for them, so you will have to do your own research into each card to see what will work for your life. If you are wary about the world of credit card debt, then you should definitely stick with the prepaid options that have proven to work for so many people over the years.