If you’re having a hard time managing your money, when it comes to using your credit cards, you may have heard of a prepaid credit card.  If you’ve heard of the term, but you don’t know how they work, I’m going to show you how exactly they work, and how you can benefit from them.

You can’t spend more than your balance

If you know how a gift card works, a prepaid card is going to work the same way.  When you find a card that you want, you’ll simply want to apply for it, and supply the bank with the money.  If you want a $500 credit limit, you’ll have to put $500 in your bank account.  When you start to spend your money using your card, you won’t be able to spend more than $500.  This is great for those that can’t control their spending with a regular credit card.

Are they free?

This will all depend on the card that you apply for.  Since they are all different, they will work differently.  Some will have fees, while others are free 100%.  It’s your duty to look at the cards, and fees to make sure you know what you’re going to pay if fees to occur.  The list link that I provided above show a few cards on the market, and what kind of fees they have.

Is my money going to be safe?

99% of the time, if you apply with a legitimate bank, your deposit is going to be just as safe as a bank account.  Your balance will be FDIC insured, and if the bank does fail, you will get your money back, as long as the balance is within the FDIC limits.

Where can I get these cards?

You can either head to our main website that has a prepaid credit card page, or you can check with your local bank branch, or retailer like WalMart.  Again, when you apply for one of these cards, make sure you look at the fees that come with them.  You’ll find that some have activation fees, annual fees, and more.

In the end, I would reccommend these cards to those that want to watch their spending.  This is a great way to watch what you buy, and manage your money at the same time.  There are a lot of cards out there, so make sure you look at a couple, before you apply.