Prepaid Debit Cards vs Prepaid Credit Cards

If your credit is not so good, you may be interested in either a prepaid debit card or a prepaid credit card. Several finance companies target consumers with no credit or bad credit to utilize their prepaid cards as a way to establish or rebuild their credit. In order to select the right card, you must know the difference between the two.

Prepaid Debit Card

Prepaid debit cards provide you with the flexibility of being able to deposit money to the card. The catch is that you cannot spend more than the amount placed on the card. It can be used like a credit card, but is not reported to any credit bureaus. The great benefit is that you are not charged interest. However, it cost to open, maintain, and load to the card.

Prepaid Credit Card

With a prepaid credit card, you are allowed the flexibility to charge as you would with a normal credit card. Just like the prepaid debit card, there are fees associated with opening the account and when making deposits. However, when you need to have a credit card to reserve a room or rent a card, a prepaid credit card will would be able to handle these transactions.

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