top of page

Is it Possible to use a Credit Card like a Prepaid Debit Card?


ree

Many big time financial and money coaches say the key to be debt free is to pay off those credit cards. Hey, if you're addicted to spending, I agree, that may be the best plan. If you want to go the debit card against your personal bank account route, it may be a better idea to keep a low balance (just enough) to cover expenses because of your increased fraud risk. Then remember to disconnect any overdraft connection to your savings account. Originally, a service banks provided to help customers avoid expensive overdraft fees became another access point to fraudulent access to both your checking and savings accounts.


But, What If You can Manage a Credit Card: I accidentally overpaid a credit card account I manage, and I started thinking about that money sitting as a credit in the account. What if I did that deliberately? Let’s say I have $500 of expenses I pay online with a credit card. Why not pay $500 monthly in advance and treat the credit card like a prepaid or debit card? I am not using my credit limit and I use the card like a debit card and I have the better fraud protection of a credit card instead of the higher fraud risk associated with a debit card. Are you disciplined enough to try this approach? Let me know what you think??


-

-

-

-

 
 
 

Comments


bottom of page