These days pretty much everyone has a credit card. They are more convenient than cash and checks and they allow you to make purchases just about anywhere, including online. But there are also many risks associated with traditional credit cards. The biggest of these risks is that they can be lost or stolen, allowing the finder of the card to use it at their will until you discover it missing and cancel it. The physical card itself isn’t even necessary anymore; often times your credit card number can be stolen, leaving you with a shockingly high bill at the end of the month, which is why people are often skeptical about shopping online. These risks are dangerous because someone can obtain access to your money and can potentially charge huge amounts on your card.

Prepaid credit cards are a great way to avoid these risks. The biggest advantage is that they are not tied to your bank account, which could be incredibly hazardous to your funds in the event of a stolen card. In addition to this, prepaid debit cards only have as much money as you load onto them. This means that the card can only be used up to that amount, which is a good way to keep your money safe from the damage that often occurs with credit card theft.

Not only are prepaid cards safer than traditional credit cards, they also carry the same advantages. They can be used anywhere Visa and MasterCard are accepted, including online, or to pay bills. Additionally they can be given as gifts or used by companies for payroll. Prepaid cards can be reloaded over and over again either online or at specified reload locations. They even come with convenient online tools that allow you to keep track of spending and remaining balances.

Living in fear of credit card theft is no way to go about life. Choosing a prepaid card instead of regular credit cards provides safety and allows you to spend with protection. Prepaid cards remove the risks associated with online shopping and prevent credit card thieves from having a heyday with your card and your money. With identity theft and credit card theft on the rise, having a prepaid card is the easiest way to protect yourself and your money.

Michael is currently a 4th year accounting student at the University of Texas at Austin. He is particularly interested in business finance and debt.  Additionally, he is writing his thesis on prepaid cards, such as prepaid credit cards, distinguishing how young people learn the importance of handling their money only by hands on experience.

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