What is a PrePaid Credit Card?

Before I start to talk about prepaid credit cards, I just want to say that credit cards are not for everyone, but it is sometimes necessary and useful to have one - especially to make purchases online or over the phone. Many people often resort to going against their better judgement and find themselves applying for a credit card just for 'emergencies'.

However, emergency purposes can easily turn into buying an 'emergency' sweater or taking an 'emergency' vacation! In these situations having a prepaid card can be extremely useful & convenient. Here's why...

This type of card is a special type of card, closely related to the debit card. It is also one of these "easy to get credit cards". It works just like a debit card except that it isn't linked to a checking account.

You simply load up your card and use it whenever you want! In most cases, you can't tell the difference between this type of card and a regular card, except for the fact that you know just how much money is available to spend! Although you deposit money on to your card before spending it, you will still get all of the advantages of having a regular credit card.

The Benefits

The benefits of prepaid credit cards are countless. For example, this type of credit card can help to build up your credit just like regular credit cards can! The main difference is that you never run the risk of building debt by spending money that you don't actually have.

Other benefits inlcude booking plane tickets, pay for dinner, go to the movies, fill up your tank, or do anything else that you could do with a regular credit card. However, by far the biggest benefit to this type of card is that your credit file will remain completely safe & untouched from negative reports. You can't have a late payment, over the limit charges or any other negative effect that is possible with a regular card.