A prepaid credit card is perfect for individuals than have little or no credit history. It is also a great alternative to a bank account.

This is how prepaid credit cards work; first you deposit funds into your account/card. You use your card to pay bills or make purchases. Then the funds are taken from your account to pay for the purchases.

The most popular methods of depositing funds are direct deposit, money gram or western union. If you choose to use direct deposit it will save you money because you will no longer have to pay check cashing fees. Most cards will allow you to use direct deposit for free.

Most cards offer an additional feature that allows you to use your account just like a checking account. You can write physical checks to companies or individuals. This can be used to pay bills such as car insurance, cable or rent. This will save you money because you will no longer have the need to pay for money orders.

Prepaid credit cards can also be used at ATM's to access cash. With this card you will never pay interest or overdraft fees again.

Many cards also offer another feature called credit builder. This feature will record your payments made through bill pay. It then reports them to a credit reporting agency. This can be used to show future lenders your credit worthiness.

These cards will be issued as a visa or mastercard. This means your card will be accepted everywhere the visa or mastercard logo is displayed. You can also use your card online and over the phone. You card will not say prepaid on it so no one will ever no the difference between your card and an unsecured credit card or bank card.

Prepaid credit cards approve everyone. There is no credit check or chexsystems verification. Thus you will be approved no matter your credit history.

In sum, prepaid credit cards are safer than carrying cash. They can be used like any credit card. If you don't have a bank account they are a great alternative and everyone is approved.