Pre-Paid Credit Cards
Pre-paid credit cards are unique; unlike most credit cards, prepaid credit cards function much like a debit card. In order to obtain a pre-paid credit card, you must deposit money into the credit card account. Once the money is spent, you cannot continue spending until you make another deposit- making it impossible to accrue debt.
Pros
- Approval is easy, even if you have no or poor credit history
- Pre-paid cards eliminate the ability to over-spend and accrue debt
Cons
- Some pre-paid cards do not report payment history and thus do not help build your credit history
- Pre-paid credit cards are not accepted everywhere, including rentals