I know a lot of people that are managing their finances by going to an all cash budget. I think it’s a fabulous way to stay on top of your spending and encourage yourself to stick to your guns when tempted by shiny things in stores or online.
However, there are legitimate reasons why you want to have a credit card also – buying plane tickets, renting a car, emergency tow, online purchases or reservations, etc.
A prepaid credit card is a great way to get the benefits of a credit card (including warranty and replacement benefits) without the worry of accumulating credit card debt, late fees and high interest charges. A prepaid credit card is also an excellent way to let your college or high school kids learn about responsible spending and how to responsibly use a credit card while having the built in safety net a.k.a. prepaid limit.
Right now American Express is also PAYING you $10 when you sign up for a prepaid American Express Credit Card. If you’ve ever considered getting one, now is a great time to act!