What is a Prepaid Credit Card?

A prepaid credit card, also known as a secured credit card, is similar in concept to a debit card. Here's how it works: you deposit money into an account. As you use the prepaid credit card, your money is automatically taken out of this account. No bills and no interest. However, you do have to pay a fee when setting up the account and additional fees every time you put money into it. If you have poor credit, it is regarded by some as a means of re-establishing good credit.