Prepaid Credit Cards: Defined & Explained

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Prepaid Credit Cards, Defined
How Prepaid Credit Cards Work
Pros and Cons of Prepaid Credit Cards
Different Types of Prepaid Credit Cards
Open-loop prepaid credit cards are those that can be used just about anywhere cards are accepted. These cards are branded with the logo of a major card issuer, like Mastercard or Visa. Closed-loop prepaid credit cards are those designed to be used only at a certain store or family of stores.
Choosing a Prepaid Credit Card
Do You Want an Open- or Closed-Loop Card?
How Do You Add Funds to the Account?
What Are the Fees?
Activation or purchase fees Monthly maintenance fees Inactivity fees Reload fees Card replacement fees ATM fees Overdraft fees Customer service inquiry fees
Common Prepaid Credit Cards
Visa Prepaid Cards
Mastercard Prepaid Cards
American Express Prepaid Cards
Prepaid Credit Card Alternatives
Money orders Debit cards linked to a bank account Cash
The Takeaway
Frequently Asked Questions
Photo credit: iStock/Eva-Katalin
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About the Author
Jamie Cattanach is a full-time freelance writer whose work has been featured at CNBC, Yahoo Finance, The Motley Fool, the Huffington Post and other outlets. At SoFi, she writes about investing, retirement, student loans and how to get your money right -- no matter what that means for you.
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