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prepaid credit card

First, understand that a prepaid credit card might come with an annual fee.  Some credit card companies apply this fee, which is possibly $25-$75, as a charge for using the card.  When possible, try to discover a company that provides this type of card without the annual fee.

Next, take a look at the credit card provider grace period.  Companies sometimes offer different grace periods based on the type of card, so scan the fine print.  Many credit cards have a 30 day grace period if you pay off the balance every calendar month.  Otherwise, interest starts compounding the minute you do a transaction.

You might want to see your credit score prior to applying for a prepaid credit card.  If your score is poor, you might not get the prepaid card.  The credit card company might give you a different variety of credit card.

Finally, consider that your credit limit on a new prepaid card might not be as good as other cards you already have.  Credit card issuers generally want to check how well you pay on time before increasing your credit limit.

To read about additional varieties of credit cards, see the credit card directory.