News 12 This Morning, March 11, 2009

AUGUSTA, Ga.-- Paying with plastic. These days there are so many options, credit cards, debit cards, and gift cards...but what about a prepaid card?

"I've used prepaid cards for vacation purposes and the reason we use them is for not to keep cash on our person," Roland Cumbee said.

"I've used them for rental cars and I've used them for hotel stays," Darlene Langley said.

Darlene Langley says it's a quick and easy way to pay.

"Just went and got the prepaid card, signed up for it, and they send you the card in the mail, and you just keep loading money on it," Langley said.
And grocery stores are taking advantage of this with a one-stop gift card shop. But unlike gift cards, a prepaid card can be used at any store, and you can re-load it. The card will only allow you to spend as much money as you pre-load onto the card.

"There is no way to build your credit at all off of a pre-paid credit card. It does absolutely nothing to help you gain independence in your credit score, nor does it do anything to hamper you," Butch Holley said.

Holley is the Vice President of Augusta Metro Credit Union and says there are pros and cons with a prepaid card. If you’re shopping online, you don't have to worry about someone stealing your real credit card number or your identity. On the other hand, there are fees. You have to pay for the card, and a monthly service charge.

Holley says make sure you do your research. There are different companies, and some have monthly fees and others have weekly fees.

For more information go to http://www.creditcards.com/