Pre-paid Cards vs. Credit Cards
It's important to understand that pre-paid cards are not actual credit cards. There is no actual line of credit. Pre-paid cards are "stored value" cards that work similarly to debit cards. These types of cards are typically re-loadable, and are usually funded through transfers from your bank account, directly from your paycheck, or some other source.

Benefits of Pre-Paid Cards
So if you're just spending your own money, what's the point of getting a pre-paid card? For many people the convenience and flexibility of using a card is a major draw. You can enjoy the benefits of credit card-like features, such as world-wide acceptance, access to ATMs worldwide, online purchasing power, and online account management. Plus you won't have to wrestle with interest charges, security deposits, or credit checks with a pre-paid card.

Before you apply for a pre-paid card - things to consider...

• Enrollment fees, annual or monthly account fees, and additional fees may still apply with a pre-paid card. Be sure that the convenience of the card will outweigh the costs.
  
• Pre-paid cards are not credit cards. You will not be granted any credit.
  
• Stored value cards or pre-paid cards are not protected by the same government laws as credit cards and credit card transactions. You may not be entitled to the same coverage for loss or misuse of the card as you would be with a traditional credit card. Research the pre-paid card's features, and make sure that you understand all the terms and conditions of the pre-paid card offer.