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What are the benefits of a prepaid credit card?
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The main benefit of a prepaid credit card is that it allows you to control your spending. You can only spend what you have loaded onto the card, so there's no risk of overspending and racking up debt. 2 Another benefit is that you don't need to worry about interest rates or late fees. With a prepaid card, all transactions are made in advance, so there is no accrual of interest.3 A third advantage is convenience. Prepaid cards offer the flexibility of being able to access funds whenever and wherever you want without having to wait for a payment from your bank account. 4 Finally, some prepaid cards come with rewards such as cash back, travel discounts, or merchandise discounts. These rewards can help offset the cost of the card itself.