Prepaid cards are exactly what they sound like: you pre-pay or load money onto the card so that you can spend it at a future date. So you can only ever spend as much as you put in.
Prepaid credit cards are a great option if you are unable to get approved for a secured or unsecured card. You get the convenience of being able to use plastic and not having to carry around cash. These credit cards act in a similar fashion to a debit card where the fund are taken directly out of the account as you spend the funds.
Pre-paid cards are great for someone that needs to develop the discipline of keeping a budget and paying off bills. Let’s face it, when you have bad credit, the last thing you want is another credit card.
So that’s a quick overview of three major categories of cards. Not too difficult, huh? Now, sit down and really think which situation is best for you and remember to never spend more money than you can afford to!