It's not a puzzle, but it sure looks like one. You want to give your teen some money to spend. You know that your daughter could buy things online with the money. You think that giving her a credit card will help her learn about money, too. She can teach herself how to stick to a budget and take responsibility for what she buys. But your plan will not work because of two things. The first thing is how old your daughter is. She is only 13 years old. She can't use a credit card because she is too young. The second is her ability to control herself. You don't know how much self-control she could have, especially when there are so many tempting bikinis, handbags, and dresses around. So, what do you do? What do you get your daughter? There are four words that make up the answer: prepaid credit cards that are free.
Paid for what?
Most of the time, free prepaid credit cards work like other prepaid cards. You put a certain amount of money into the account. Then, you can only use the card up to the amount you put on it in the first place. So, you can see that your cash balance works just like the limits on your other credit cards. Your ability to buy things is only as good as how much cash you have.
You can keep your spending under control with the help of free prepaid credit cards. Normal credit cards let you swipe as much as you want, but free prepaid credit cards only work as long as you don't spend more than the amount you put on them. This makes it a great plastic for people who spend too much, students on a tight budget, or worried parents trying to teach their teens about money.
A credit card that's not really a credit card
Credit cards are the same thing as free prepaid credit cards. But many people say that this name is wrong. A prepaid credit card is not the same thing as a real credit card. Why? First of all, the card issuer doesn't offer any credit. The person who has the card spends money that has already been put on it. This is exactly why kids as young as 13 can get free prepaid credit cards. Minors can get their own prepaid credit cards because they don't have to worry about getting credit.
So, why get prepaid credit cards for free?
Getting free prepaid credit cards can be helpful in some ways. One thing that stands out is how easy it is to get one. You can actually buy them on the Internet. Also, many providers do not check your credit or look into your income. Since you're putting up your own money, providers won't make you go through hell and back just to use your card.
Also, unlike with a regular credit card, you don't have to pay interest on a free prepaid credit card. What's the point? After all, you are spending your own money. Another benefit is that free prepaid credit cards look exactly like regular Visa or Mastercards. They can be used anywhere that regular cards can be used. Also, some free prepaid credit cards can help you build or rebuild your credit. Every time you use it, you give yourself a better credit score.
We live in a world where a lot of what we can buy depends on how good our credit is. Credit is good, and a high credit score is something to die for. Free prepaid credit cards are for people who have trouble controlling their spending, haven't paid off their debts on time, or are under 18 years old.
