I'm interested in using prepaid cards as a way to minimize the damage that I might sustain if (for instance) a major retail company is hacked and my credit card information is stolen.
Does the following strategy make sense?
- Buy a prepaid, re-fillable card.
- Only use this card to make purchases.
This way, even if someone gets a hold of the card information, I know they can only use as much money as I've put on it.
There are two things I'd like to accomplish with this:
a. minimize the risk of making purchases online or with retailers (as I've explained), and b. still build up credit.
The point being, I would still re-fill the card using my ordinary credit card, so each time I pay back this balance to my credit card account, I can still be building up my credit. (Is this how credit-building works?)
My hope is that this strategy ensures there's only one place where my credit card number can be stolen--the route via which I refill my card--so this protects my actual credit card number, which I view as much more valuable than the number of some prepaid card.
Does this make sense?