Many individuals are understandably reluctant to use a conventional credit card. These individuals take a look around at their friends and neighbors and realize how much being overextended in terms of credit can affect lives. Often, the decision is made to cut up any existing credit cards and never use them again in order to avoid further temptations.

While this type of person should be applauded for holding to an economically stable viewpoint, they will often find themselves at a disadvantage in the marketplace without the buying power of a credit card. These financial instruments are today are much more necessary than ever before. Hotel and airline reservations must be made using a major credit card and many people find that they need one just to apply for an account at a movie rental store!

As more and more people use the Internet for the majority of their purchases, they find that the convenience and abundance of products in cyberspace can only be accessed by using a credit card. Additionally, credit cards are one of the key ways to establish a credit history.

Credit card companies will report on individual spending to the three major credit bureaus of the United States of America. These bureaus are responsible for compiling this information and assessing the credit score of the individual involved. This score is vital when it comes to the purchases that most people cannot afford on the spot, such as a new car. Individuals need a credit card in order to be approved for financing options, and a credit history is even more important when applying for a mortgage.

How, then, can a conscientious spender avoid the pitfalls of debt while still gaining access to the necessary functions using a credit card provides? The answer is in the prepaid credit card. Prepaid cards do not operate in the same way as credit cards in terms of spending. Instead of borrowing money against future income, users of a prepaid card load the card with money through a variety of options. Once the balance on the card has been used, the holder can no longer spend on the card until it is reloaded. This way, the user can take advantage of the functions of a credit card while staying well clear of debt due to excessive spending.

Because using a prepaid credit card does not involve spending money you do not have, applying for such a card is a non-invasive procedure. The application does not call for either an employment or credit check, nor does the company ask for security deposits.

Loading these types of cards is also easy, can be done from a number of financial institutions including ATMs without incurring a deposit fee. If you opt for this type of card you are entitled to all of the regular services that major prepaid credit card companies provide, including access online 24 hours a day to account information and deposit options, as well as the toll free assistance number.