Prepaid credit cards can be an excellent tool for many borrowers. They assist you in establishing credit and developing your borrowing power. However, not all of these cards are the same.

To make sure that you get the best credit cards, consider these six factors of the prepaid card before you file an application:

1. Initial cost of the card. There is usually a fee to set up a prepaid credit card; you want a low one.
2. Monthly cost of the card. Many prepaid cards have associated monthly fees; know yours.
3. Cost to reload the card. Some credit cards will charge you to extend your credit again and others won’t.
4. Maximum that you can load on the card. This could vary based on your credit history but it also varies by card.
5. Hidden fees. Check for transaction and foreign transaction fees, ATM fees and other costs associated with using your card.
6. Benefits. Many prepaid cards are now starting to offer rewards to their users so find the ones that have the best benefits.

Prepaid cards, like bad credit credit cards, are great for some people but not for all of them. Consider your choice wisely in order to make sure that you’re selecting the cards that are best for you.

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