Prepaid credit cards are often used for consumers that are just starting off and looking for their first credit card. Because they have no prior credit experience, they have no credit, which is often equivalent to having bad credit in the eyes of a lender. Reloadable cards are a good way for a new borrower to experience having credit cards without the worry of overextending themselves. The borrower can only use the dollar amount that has been put on the reloadable cards.

Prepaid or secured credit cards are also great for borrowers that tend to spend too much and want to be able to control their spending while still having the luxury of credit cards. Because the money has to be deposited before the secured cards can be used, borrowers can get a real look at how much they are charging on the credit cards. Before applying for credit cards of any kind, the consumer should always read the fine print and terms and conditions of each card. This is particularly true with prepaid or secured credit cards as the fees and fines tend to be quite high with these reloadable cards.