Students are prime targets for credit card companies. Teaching kids how to use credit cards wisely before they become eligible to apply for credit on their own can be a wise move. Reloadable credit cards can help do that by enforcing one very important rule:
No money? No spending.
True credit cards that provide a credit limit up to which you can spend money without actually having the money of your own, make spending all too easy for many consumers. The Federal Reserve Statistical Release on Consumer Credit dated November 6, 2009, reports that outstanding balances on revolving credit at the end of September totaled $886.6 billion. BILLION. That is really rather scary.
