Prepaid cards are, in fact, not credit cards. Prepaid cards act like credit cards but, in reality, are more like debit cards. These types of cards have many benefits, including: No finance charges, easy budgeting, avoiding debt, etc.
With prepaid cards, the cardholder determines the credit line. Generally speaking, a cardholder's credit line depends on how much money he/she transfers to the card. Therefore, there is little risk of running up credit card debt, while budgeting is made easier.

Although most prepaid cards do not charge finance fees, other fees may apply, including: monthly fees, startup or application fees, overlimit fees, ATM fees and more. Be sure to thoroughly look over the terms and conditions for each specific card before applying.

Compare credit cards for those with bad credit

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What is a prepaid card?