Sarah was a teenager on the move. She got her first part time job, studied, and participated in extra-curricular activities. She was growing fast. Her parents had decided that it was time to teach her basic skills of money management, but she was still too young to have a regular credit card. Her parents didn’t want her to suffer the costs of owning a credit card. They didn’t want her to spend more than the assigned credit limit. They also wanted her to avoid paying interest fees and other penalties. How could she learn about spending money wisely without receiving an expensive lesson? Answer: the prepaid credit card.
Sarah’s parents had discovered that some of Sarah’s friends were using prepaid credit cards. The most important benefit of using a prepaid credit card was that Sarah could learn how to use a credit card without paying the high costs of interest that are associated with traditional credit cards. Imagine: 0% interest! She would only spend money that she had deposited on the card. If she needed more money, then she would have to add money on to the card from her bank account. It was the perfect approach to financial literacy! Sarah could learn how to budget and spend money without going into debt and paying interest.
FAST AND EASY
One major benefit of the prepaid credit card was the application process. Although Sarah didn’t have a credit history, she was approved. Everyone is guaranteed! No credit checks or verification is required to get your prepaid credit card. When Sarah received her new prepaid credit card, she activated her pin code, deposited $50 on her new prepaid credit card over the telephone, and used her prepaid credit card to buy additional minutes on her cellular phone.
SECURE
Her parents felt secure with the prepaid credit card because it did not allow her to exceed her spending limit of $50. If she needed to spend more than $50, she would have to get the extra money from her bank account. With the prepaid credit card, Sarah spent money with the ease of a credit card without going into debt. She could use the prepaid credit card wherever VISA or MASTERCARD was accepted, and she could add money to her prepaid credit card over the phone, online, or by visiting an ATM. Soon, she will shop online and buy some books for the upcoming school year.