What are prepaid credit cards?

Prepaid MasterCard cards and/or prepaid Visa cards look exactly like a regular credit card. Neither you and your friends, nor the merchant who accepts MasterCard and Visa will be able to identify it as a prepaid credit card.

You obtain these prepaid credit cards by "pre-loading" them, which means you deposit cash into your account up-front, similar to a pre-paid calling card. Then you use your prepaid MasterCard or Visa anywhere these cards are accepted.

Prepaid Credit Cards are more practical than cash for many with previous credit problems since you pay for your purchases before you even buy anything. This helps you plan your purchases better and avoid impulse buying. Prepaid credit cards offer other advantages:

- They are easy to get since they do not require stringent credit check or income verification.

- They can be purchased online and at many retail stores.

- They have very short credit card application.

- They do not have any interest charges since you are not borrowing money.

- They cannot lead into credit problems due to inability to pay borrowed funds. Again, you are not borrowing money.

- Prepaid MasterCard or VISA have world wide acceptability virtually any anywhere VISA and MasterCard are accepted.

Don't forget the downside of prepaid credit cards:

- They are costly to get with set-up fees of $5-$50.

- They are costly to maintain - "Loading" fee of $5 or more every time you deposit money into them.

- They require up front cash.

- Some prepaid credit cards cannot be used for recurring payments like monthly subscriptions.

After all said and done, prepaid credit cards may be your only solution to carry and use a credit card. With prepaid credit cards you no longer have to carry your past credit problems like a sign on your forehead. Instead you can reach into your pocket and pullout that prepaid credit card.

They may be a blessing that helps you take care of day to day needs and make personal changes to help you get on track to a disciplined attitude toward money and spending. If you decide to get a prepaid credit card, compare several offers and select the one that most closely matches your needs and special circumstances.

And while you go about your struggles with this and other of life’s ups and downs, remember Robert Johnson who said, “Measure yourself by your best moments, not by your worst.”