Many people gravitate towards credit and debit cards when considering ways to pay for goods and services. Another good option is a prepaid credit card.

While prepaid credit cards might resemble traditional credit cards, they are linked to an account that is funded ahead of time. This is different from a credit card, which does not require a deposit and where you essentially borrow the money and repay it monthly.

Prepaid credit cards are a good option if you want to minimize your spending and remain within budget, don't have a bank account, don't have good credit, or if you want to give your kids a way to buy their things without giving them cash.

You can load money into your prepaid credit card through direct deposits, from savings or checking accounts, from a mobile banking app, or using cash at the participating retailers' register.

Like traditional credit cards, you can use your prepaid cards to pay for services, goods, and bills. They are also accepted almost everywhere because reputable card networks like MasterCard, Visa, and American Express back them.

One of the most significant advantages of using a prepaid credit card is that you never have to worry about overspending because you can only spend the money that you load into the card. This is a great way to stick to a budget.

You also don't have to worry about qualifying to get a prepaid credit card, unlike when getting a traditional credit card, where you must have a high credit score. This makes it more accessible for everyone regardless of income or credit standing.

Even with all these advantages, prepaid credit cards have disadvantages. You may have to pay additional fees when you initially set up the card, reload your card, withdraw cash, make purchases, or check your balance. Some cards might also charge you when you use an ATM and for monthly maintenance. Ensure you check any additional fees with your cardholder to determine whether it is worth it.

These cards might also be a disadvantage if you have an emergency that requires more money than you have loaded in them. Often, the ceiling for these cards isn't very high--sometimes maxing out at as little as $500. This might not be enough money to cover some larger items, like the deposit for a rental car, emergency airline tickets, or vacation package deposits or rentals.