Also when you get a secured credit card and pay you balance on time it positively affects you credit rating and usually 1 year after on time payments banks release security deposits (of cause if you do not have collections items or recent bankruptcy on your credit file).

I agree it is better to get a secured credit card if you do not qualify to a regular one. Prepaid credit cards charge you monthly fees, plus additional fees if you use ATM. The reason why people get prepaid credit cards is because they do not qualify even for a secured credit card, or they simply do not want the hassle of applying for a secured one.

I can see your point and smart, why take chances with your regular credit card on the internet with all the fraud that’s going on.

The prepaid one is just one that I use for purchasing on the internet. I don't use it like a credit card more like a debit card for the internet. We have regular credit cards and lines of credit for establishing and repairing our credit

Why not get a secured credit card instead of a prepaid one, it will be cheaper and your getting your credit established at the same time?

Money Mart's prepaid mastercard does have your name on it. I have one that I use only for internet purchases

Yea, I was confusing it for secured. Prepaid ones don't even have your name on 'em, do they?

No, prepaid cards never report to the credit bureau. They can't. You aren't acquiring credit from them. You are loading money onto the card and spending it.

My kids have Much Music prepaid cards for their internet purchases. They don't need (nor have) credit cards. What they have is a mastercard.

Secured cards report to the bureau.

They might be ordering something off the Internet...

Depending on how the card is reported on the credit bureau, it may help the person to (re-)establish credit.

The only benefit I have seen for prepaid credit cards are for a service or something specific you are signing up for. In that case you can use them once and may never have to again.