Pre-paid credit cards can be an invaluable resource, especially for people with little or no credit who want the use of a credit card but can't qualify or don't want the responsibility of a traditional card. They are also a great option to help control your spending and avoid the trap of tempting unsecured credit lines.
With so many purchases requiring credit cards, the pre-paid option can make your life much easier. Online purchases, phone purchases, hotel, airline and car reservations - there are more and more cases when cash simply doesn't get the job done and the convenience of a pre-paid card can turn into a practical necessity.
Unlike traditional credit cards, there's no credit check or approval process for pre-paid credit cards. Since the card is "loaded up" upon activation and no line of credit is extended, there's also no risk of being unable to pay off charages when the bill comes due. Some pre-paid credit cards even function like a bank allowing you to direct-deposit your paycheck right to your card balance - and some even do so with no charge for the service.
Some issuers charge an annual and/or activation fee for using a pre-paid credit card. The cost of utlitizing pre-paid credit cards usually take the form of a modest fee upon activation, usually $5-$10. Additionally, you can always add more money to your card for another modest fee.
Just because you have little or no credit doesn't mean you can't have the benefits and advantages of using a pre-paid credit card and all the benefits that come with it.
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