What are Prepaid Credit Cards?

Exclusive info on credit cards... Products

Free Stuff

Site Map background

Basics of Credit Card

Credit card processing

Best credit cards

Credit cards banks

Business credit cards

Teen credit cards

Small Business credit cards

Instant Approval Credit Card

Credit Card Types

Types of credit cards

Secured credit cards

Unsecured credit cards

Student credit cards

Prepaid credit cards

Cash back credit cards

Visa credit card applications

Virtual credit card

Credit Card Issues

Credit card fraud

Credit cards for bad credit

Credit card debt

Hidden Costs In Credit Cards

Credit Counseling

Debt Consolidation

Credit Card Late Fees

Identity Theft

Info On Credit Card

Free credit cards

Credit cards with reward

Important credit card info

Airline credit cards

Internet credit Card

Credit cards balance transfer

Student Credit Card Guide

Low Interest Credit Cards

Credit Card Number Generator

Pay Day Loans

Business Loan Calculator

Free Newsletter

Stay updated, sign up for our free newsletter to receive useful tips

*Full Name

*Email Id

Pros And Cons Of Junior Credit Cards

Prepaid credit cards or junior credit cards can be effectively used for purchasing, but they cannot be treated as credit cards as it is not possible to avail credit by using these cards. This article tells you in detail about the following

What are prepaid credit cards and what is the principle behind it?
What are the benefits of prepaid credit cards?
What are the major drawbacks of prepaid credit cards?

Prepaid credit cards are also known as debit cards or sometimes as junior credit cards. This type of credit card offers many of the shopping advantages of regular credit cards. However, it is not truly a credit card because you cannot get credit. Instead, this type of credit card only allows you to spend money that you have placed on an account.

How Do Prepaid Debit-Style Credit Cards Work?

When you apply for a prepaid credit card, your income and your credit rating are not considered. Instead, you contact a credit card company or your bank and add money to your card. Then, you activate your card just as you would a regular credit card. Once you have done this, you can start using your debit card just as you would your credit card. In fact, there is no way to tell by looking at a card whether the card is prepaid or not. As with regular cards, you can use your prepaid credit card online, on the telephone, or in person.

Featured Articles

Best credit cards
Credit cards banks
Secured credit cards
Student credit cards
Credit card debt
Free credit cards
Airline credit cards

Each time you make a purchase with your card, the amount of your purchase will be deducted from your total balance. To spend more money, you can simply add more money to your account.

There are several types of prepaid credit cards, including traditional cards, youth cards, and gift cards. Traditional prepaid cards can be used by almost any user. Special student or teen cards are designed for younger card users. Many parents buy junior or teen cards for their children in order to teach their children how to manage money. A teen card can be a convenient and safe way to provide an allowance and it can give children the money-management skills they need later in life. Gift prepaid credit cards work much the same as gift certificates, but can be used at any participating merchant. They are ideal for travel and for holiday gifts.

Continue to: Disadvantages Of Prepaid Cards

Different Types Of Credit Cards - Know Which One To Go For
Secured Credit cards - The best way to re-establish your credit
Unsecured Credit cards - Is it worth to buy it?
Be a credible student with a student credit card
Understanding the cash back credit cards
Visa Credit Card - Have You Come Across It?