How to Find the Right Prepaid Credit Card

Prepaid credit cards have a number of uses. One-time use prepaid cards are typically used as gift cards. Reloadable cards function as substitutes for unsecured credit cards, and if you don't have a bank account, a reloadable card can also function like a checking account. You can have your paycheck directly deposited to the card, then withdraw it as cash or use it to make purchases. Some cards offer online account management, and others can receive wire transfers or be reloaded at convenience and grocery stores.

Instructions

1

Plan how you want to use a prepaid credit card. If you're planning to use a card occasionally for online purchases, a one-time use card makes sense, for example. With one-time use cards, each time you purchase a new one, you would use a new number, and there aren't significant ties to your identity. If you're looking for a card to use because you don't have a checking account and are tired of carrying cash, a reloadable card makes sense.

2

Research prepaid cards. You can research in person at grocery stores, convenience stores and department stores. Look at the back of the prepaid card package. Find the fee for the card and whether it's reloadable. Look for information on how you reload the card, and if you can check the balance online.

3

Select your prepaid card. Base your decision on the card with the lowest fees (fees should be $5 or less to purchase your card and $5 or less to add money your card) and most convenient reloading options. For example, GreenDot cards can be reloaded at 7-Eleven stores, grocery stores, drug stores and Wal-Mart stores. A Western Union Prepaid MasterCard can be reloaded at any Western Union location. If it's a one-time use card, choose the card with the lowest fees.

4

Register your card. This is especially important for a reloadable card, as the card company will send you a personalized card to reuse. Generally, the card you initially purchase is a dummy card that can't be reloaded, but your personalized card can be reloaded. If it's a one-time use card, registration is optional. The advantage to registering is that if you lose your card, you don't lose your money; the card can be canceled and reissued. The disadvantage is a loss of anonymity.