How to Apply for a Prepaid Credit Card

A prepaid credit card is an easy way to keep funds nearby without carrying lots of cash. Whether you are setting up a prepaid credit card for your college-age child or you want to protect your money when you travel, you can apply for a card with these steps.

Difficulty: Easy

Instructions

Compare and Apply for Prepaid Credit Cards

1. Check for fees charged by companies offering prepaid credit card services. Even though these cards do not charge interest or late payment fees, you may be charged an initial fee to set up your account and additional fees each time you deposit more funds.

2. Confirm whether your prepaid credit card may be used to make purchases such as Internet or monthly subscription services. Many times, prepaid credit cards cannot support these transactions, as your cards may lack the necessary funds to cover the monthly charges.

3. Apply for a prepaid credit card that you can load from one location and use in another. These cards are generally referred to as "Home and Away" cards. They are primarily marketed to parents of college age students who want to provide their children. with electronic funds without risking interest-laden credit card debt.

4. Make sure that you choose a card that will protect your funds in the event of an unauthorized charge. The best way to determine this is to review the terms and conditions presented by the credit card company before you apply.

5. Don't expect to get a prepaid credit card for any child under 13. Most cards require that their end users, as well as the individual setting up the account, be at least 13.

6. Choose a card that will give you the benefits of a regular credit card, such as rental car and hotel reservation capability. Many times, car rental companies and hotels will not accept a debit card (which draws from your checking account) as confirmation of your reservation, but they will accept the right prepaid credit card.

Tips & Warnings

• While a prepaid credit card looks and feels like a regular credit card, most providers do not report your usage to the three major credit reporting agencies. This means that those wishing to improve their credit score may not see any benefit.

[Prepaid101]

on 10/17/2008 This is good information, but looking for a card can take a long time. I like using http://www.prepaid101.com because they have side-by-side comparison on a number of different prepaid cards. There is even a feature called the card calculator, http://www.prepaid101.com/Calculator.aspx, that will search for a card for you, all you have to do is fill in some information about what you are looking for in a card and such.