A prepaid credit card is simply a way for you to be able to pay for things with the card rather than cash. You cannot actually get credit on the card, you can only spend what you personally load onto it. It’s just like a top up mobile phone card, you buy the card prepaid and load it into your phone and can spend the balance. It’s just the same with prepaid credit cards.

So How Do You Buy A Prepaid Credit Card?

Well it’s very easy to buy one and they are available in many places. Do a quick search online and you’ll find dozens of lenders who will give you one. You are almost certain to get approved too and your credit history isn’t important because the lender isn’t lending you any money. As long as you have money to put on the card, each company will be glad to send you one in the mail.

The lenders make their money each time you use the card. Although make sure that you also aren’t being charged a monthly or yearly fee, as some companies try doing this. You need to look at any fees that are charged for “activating” the card too as some lenders charge $5-$10 just for doing that. It’s just wasted money for you, so find a lender that is virtually fee free and there are many of them so don’t just choose the first option.

A prepaid credit card is actually a very good idea and can prevent you from going into debt. If you do have bad credit, then getting a prepaid card can help you to improve it because your transactions will be sent to the bureaus and will be reflected. So you get the full advantage of not having to carry cash around with you and it will stop you getting into debt. Overall a prepaid card can be very beneficial and should be something you consider.