I just seen an advertisement for a pre-paid credit card...does this make any sense?

Usually it's "pre-paid" because you have to deposit a certain amount of money in that bank before they give it to you. Then the limit on the card is about half the amount you put in, so they always have your money.

Well, why would someone want a credit card like that?

So they could buy things online, even if they had bad credit and couldn't get a regular credit card.

Ohhhhhhhh, I see. Thanks Kat

It also helps you from spending money that you don't have and running into huge interest payments.

oh ok well i never thought of that...then its more like a bank card not a credit card right?

[QUOTE]Originally posted by XFED:
Usually it's "pre-paid" because you have to deposit a certain amount of money in that bank before they give it to you. Then the limit on the card is about half the amount you put in, so they always have your money.[/QUOTE]
XFED, what you describe is a "Secured" credit card...the pre paid cards have some fees for transactions but otherwise the limit on the card is the amount you choose to deposit...they are a good deal for people without bank accounts, or who do not want their account number or regular credit card info put at risk by on-line or telephone transactions...you can also get such cards anonomously, so if you want to purchase certain items discretely, a prepaid card is one way to do so.

Sounds like a check card to me!!! But what do I know

Very much like a check card, but not tied to your bank account... The Checking Debit cards do not have all the same fraud protection built in to them that a conventional credit card has, the Pre Paid cards have basically NO fraud protection, but since the card is not linked to your bank account, you are less at risk if the card is lost/stolen. You can lose the balance on the card, but not your entire bank balance..