Prepaid cards are another way to pay for things. You add money to a prepaid card and use it like a debit card. But you pay very high fees to use a prepaid card.
How do I choose a prepaid card?
If you decide to use a prepaid card:
- find out what fees you will have to pay
- see which card has lower fees
- do not buy a card because you like the celebrity who talks about It may have higher fees than other prepaid cards
How do I compare prepaid cards to other choices?
Prepaid cards can cost a lot to use. You might want to compare other ways to spend your money.
Choose at least two of each to compare:
- prepaid cards
- secured credit cards
- checking accounts in a bank or credit union
For each type of card or account, answer these questions:
- What are the fees? Look for:
- low activation fees
- low annual fees
- low ATM fees
- Will the card help your credit history? Some cards send information to the three credit reporting That might help you build a credit history.
- Does your deposit earn interest? Sometimes you can earn interest on the money you put on a card or in a bank account.
Compare the answers. You might find ways to spend your money that are cheaper than a prepaid card.