How Pre-Paid Cards Work to Manage College Funds

Students can avoid debt problems by using pre-paid credit to manage student funds:

  • budget your monthly spending amounts
  • avoid interest rate charges
  • avoid getting into credit and debt problems
  • manage your account online
  • build up your credit reporting history
  • use where credit cards are accepted
Parent gets a prepaid card for their child (approval guaranteed). Parent adds monthly spending money to the card.
 
Student uses card
to buy food, supplies, pizza, etc., at any merchant that accepts MC/VISA cards.
 
Student or parent can monitor pre-paid
account electronically
for budgeting purposes. Pre-paid cards can help maintain a spending budget.
 
Student or parent can reload the card with additional monthly spending funds as needed.
 
Using pre-paid credit cards protects the
student from accumulating credit card debt.
 
Students can use
pre-paid cards to build a credit history for future credit approval on auto loans, employment,
home mortgages, etc.
 

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