Credit cards are a sore subject for me. I just won’t use them anymore because I can’t trust myself to use them properly. I recommend others to just use cash.
But in this world, you need some kind of plastic to do business.
A prepaid credit card really isn’t a credit card, since no credit is offered by the card issuer. The card-holder spends money which has been “stored” in a deposit bearing account by the card-holder or someone else, such as a parent or employer.
After purchasing the card, the cardholder deposits the account with any amount of money, up to the predetermined card limit. He or she then uses the card to make purchases the same way as a typical credit card or a prepaid debit card.
The main advantage of prepaid over secured credit cards is that you are not required to come up with $500 or more to open an account. With prepaid credit card you are not charged any interest but you are often charged a purchasing fee plus monthly fees after an arbitrary time period. Many other fees also usually apply to a prepaid card.
Since there is no credit line involved, prepaid credit card are sometimes marketed to teenagers over the age of 13 years old for shopping online without having their parents complete the transaction.
So, the question is, “Should you get a prepaid credit card ?” It depends on what card you use.
Shop around. Find a card that suits your needs. Always check the fees you’ll be charged. And above all, know your limitations when dealing with any kind of credit card .