You can then go out shopping with your prepaid credit card in your purse or wallet just as you would with any other type of credit or debit card.

How does it work?

With prepaid debit cards you must deposit funds into the account before using the card.
All you have to do is fill out a short application, pay a small set-up fee, and load the card with cash (this amount will be your “credit limit”).

This means that like a pay as you go phone, you need to put money on to the account before you can use it. The prepaid credit card is also unique in that there are no fees charged for transfers of funds to the card.

Why secured credit Card?

Maybe you just don’t want to get into debt, in either case a prepaid credit card could be the suitable solution. Prepaid credit cards enable you to pay for anything that you’d normally pay for with a credit card, the main difference is you don’t take on any debt in the process. Because there’s no borrowing involved, using a prepaid card does not demonstrate your ability to manage debt.

You benefit from all the advantages of a credit card without the worry of getting into debt. Prepaid credit cards allow you the features, security and flexibility of credit cards without the worries of debt or overspending.

It’s an easy way of saving money if you can get a credit card in the first place, but not if you’re one of the millions of customers who have experienced credit problems and get regularly turned down for a credit card or loan. The prepaid credit cards cut this problem out by allowing you to preload cash onto the card and then to use it abroad for a small fee.

Also bear in mind if that you currently have a bad credit rating, the use of a prepaid credit card can help you repair it, albeit slowly.For those who have had financial trouble in the past the prepaid credit card is one of the best things they can obtain.