A prepaid debit card is an easy way to charge it—here’s what you need to know

You don’t have to pass a credit check to qualify for a prepaid debit card. However, using a prepaid debit card cannot help establish credit history or build your credit score. So, before deciding whether to get one, it’s important to understand whether you seek to build credit or just need a tool to manage your funds—as well as benefits and drawbacks pertaining to interest, fees, and protections. We’ll help you evaluate if a prepaid card is right for you.

What is a prepaid debit card? 

A prepaid debit card is a type of plastic payment method that you can pre-load with money. Once you take this step, you can use the card to make purchases at brick-and-mortar stores or online. Prepaid debit cards use 15- or 16-digit numbers just like you may have seen on other types of plastic such as traditional debit cards or credit cards.

Many prepaid cards are backed by major credit card networks such as Visa, Mastercard, or American Express. As a result, you can typically use a prepaid debit card at any retailer that accepts credit cards or regular debit cards.

In general, prepaid debit cards work like gift cards. Once there’s money on the card, you can spend those funds (minus any applicable fees) until the balance reaches zero. At that point if you want to use the card for additional purchases, you’ll need to deposit more money onto the prepaid card before you can use it as a payment method.

Prepaid debit cards vs. regular debit cards…