These cards work on the same principle as a standard credit card but with one important difference, there is no line of credit. You must first load money onto the card by direct deposit, bank transfer or other methods particular to each issuer. Every time you use the card, the amounts of your purchases are deducted from your balance. It is therefore important to remember the amount left on the card before making any purchases.

You can use your prepaid credit card for those occasions where cash is not accepted like buying online, ordering though the mail or paying bills over the phone. The cards can be used anywhere normal MasterCard or Visa cards are accepted like restaurants, gas stations, movies and shopping.

Prepaid credit cards are instantly approved as there are no risks to the companies. There is no income verification, credit history checks, no deposits required and you do not need to open a bank account. You will be required to transfer some money to activate the card.

Since prepaid credit cards can withdraw cash from ATM's, you can safely carry less cash. Remember prepaid cards are interest free and that include cash withdraws.

Prepaid credit card companies offer two fee choices. Pay a small monthly fee or pay a fee per transaction. Paying a monthly fee is usually cheaper if you intend to use your credit card more than five time per month. This fee maybe waived if you elect to make regular direct deposit to your card.

Not all prepaid credit card offers will report you transaction to credit bureaus. So if you are looking to rebuild or starting your credit history; look for card that report the cardholder's transactions to credit bureaus like Equifax, Trans Union or Experian.

In today's cashless society, it is difficult to live without a credit card. If you are the type of person who cannot control your spending or are trying to get out of debt, a prepaid credit card is for you. Since you control how much is added to the card and you can only spend what you have, you will not loss track of your spending.

Prepaid credit cards are great for parents looking for a way to teach their teenage children financial responsibility and build-up their credit history. Students using unsecured credit cards with poor financial discipline have statistically left college with large credit card debts.

Additional items you may find with a few prepaid credit cards are points programs, rebate programs, affiliate programs, sweepstake draws and credit report facilities. It is important to compare the different prepaid credit cards offers available to find the best card for you.