Prepaid credit cards are becoming more and more popular and the number of providers has risen in the past few years. This is not a niche the high street banks have ventured into and that is the reason there are quite a few different providers out there that you may never have heard of. However a prepaid credit card looks and works just like a debit or credit card. They are partnered with either Visa or MasterCard, which is a great advantage point for people using these cards, as you can use them to buy anything on the internet, the card is facilitated with purchase protection and you can use them for booking hotels etc.
They look like a credit card and work like a credit card. The difference with a prepaid credit card is that you don't have to pay interest or penalty fees and that is one of the main reasons the high street banks haven't ventured into this market as they make huge amounts of money with late fees and interest.
Prepaid credit cards come with many other great features, the best one is that they are 100% guaranteed / instant approval. There are certain terms and conditions to the 100% approval, obviously being the correct age and proving your address to get the full features that the different card providers facilitate. You don't need a bank account and there aren't any credit checks involved when applying for one of these cards. So the application can be completed in minutes and your card will be in the post shortly after.
So how does the card work if it isn't a credit card? You have to load money on to the card to use it. If there is no money on the card you can't use it. This is why there are no credit checks involved when applying for a card, you are never going to be in debt and owe anything back to the provider. However some prepaid card providers do now offer small loans and overdraft facilities where a flat fee, no interest is charged.
So why apply for a prepaid credit card? Prepaid cards are one of the best ways to carry cash around, they work like back accounts, you can even pay your wages onto them, they are accepted everywhere the Visa and MasterCard logo is visible, instant approval, great for people with bad credit as you can even build you credit score with these cards and you have enhanced security with your Chip & PIN technology. As they are partnered with Visa and MasterCard the same security and fraud protection is extended to your prepaid balance and if the card is lost or stolen, you are not held liable for any fraudulent transactions; your money is safe.