To me a prepaid credit card is more like a debit card without the pin number. You have to secure the card by loading money on to. With most of these type of cards, after you have used all the funds, you can dispose of the card if you wish or keep adding money to it.

I recommended that all my friends and family use these type of cards when they are buying something from a site or someone they don't fully trust. While I don't feel that people should buy items from places they don't trust, it just sometimes happens. It is worst with the infomercials and those "as seen on T.V." products. Many of these places keep billing you for replacements, clubs, refills, etc.. that you haven't even authorized or known you signed up for.

These are also very handy for people who do not have bank accounts, credit cards, or credit cards with low limits. It is also good for people who need a credit card to make a purchase, but don't want to be tempted to put on their card. I feel they are also good to give to older children/students for emergencies or to buy groceries and necessities with.

Upon getting one, you will have to find a location that sells them or simply get one online. Then you will need to activate or register it. Make sure you keep your card after using it, because if you need to make a return, you will need it to get a refund on your merchandise.

The term “prepaid credit card” is probably a bit of a misnomer since these cards really offer no credit. Really, a prepaid credit card functions much more like a debit card or gift card than a credit card. A prepaid card requires that you “load” money onto the card and then you can use your card in any store that accepts that card.

The main difference between a prepaid card and a credit card is that on a prepaid card you cannot charge an amount greater than the balance that you have placed on the card. These cards are great for students, children or anyone who has difficulty getting approved for credit. They are convenient and can be very helpful in emergencies.

While it is true that many of these cards have activation fees or monthly fees, they are often waived if certain balances are maintained on the card. In the right situation, these cards can be helpful, but if you are responsible and have good credit, they probably are not worth the additional costs.

Prepaid Credit Cards is an alternative credit card, wherein users can use in booking airline reservations, hotel accommodations and shopping online. In applying for a prepaid credit card, the applicant only needs to set aside certain amount of funds, once the funds is depleted, your recourse would be to replenish the funds for your account. One of the main draw of prepaid credit cards is that you will not be incurring additional obligations, since you are funding your account.

Furthermore, even if you have a bad credit, you can still open one as long as you have the required funds. However, " you'll have to pay a fee to set up your account. The amount varies, but you can probably expect to pay about US$5 to $10 to open a prepaid credit card account. In addition, you'll have to pay additional fees every time you deposit more cash into your prepaid credit card account."

Prepaid credit cards are exactly as they sound. You put money you already have in the bank on the card so it can be used. These are typically used for say; hotel stays, online purchases etc. places where credit cards are a must.

The problem? you have to pay an activation fee for the. Most are upfront, and you can keep depositing money on them etc. But they activation is like $30 or so. Plus you pay a month to keep it active say like $3 a month.

Most are used to build credit, to where you can actually get a real credit card. If you already have credit cards, do not waste your time with these. Why pay more money for something you have?