All prepaid credit cards have their pros and cons, and can be used in any business that accepts the brand. For example, as long as the prepaid credit card has a Visa logo, it will be accepted anywhere Visa is. There are a few things to note about these types of cards however:

• They will not help you improve your credit. Since there is no line of credit extended to you buy the company, it is look at like a gift card.
• While there is no annual percentage rate (APR) associated with purchases, sometimes there are fees involved. Some companies, for example, will charge you a fee every time you call and check the remaining balance. Others deduct a set amount (up to $100) each year that the card goes without use.
• Unlike cash or most gift cards, prepaid credit cards can be canceled and reissued in the event of loss or theft.

All prepaid credit cards have their advantages. They make great gifts for people who already have everything and they’re a safer bet than cash. I’m not saying that I would give up my cards for prepaid cards, but they do serve a purpose…