What is a credit card? Well let's get down to the basics. The earliest conventional form of 'credit creation' or borrowings is a loan. The concept of loan, as all of us know is very simple. The borrower of the loan avails money from the lender which is then paid back by the borrower to the lender along with some interest. The digital cash technology, that was developed in the early modern era, led to the development of credit cards. The credit card is a credit facility in which the credit card companies bear the cost of the transaction when the borrower swipes the credit card to make a payment. At the end of the month, the user of the credit card receives a bill where the record of transactions is communicated. The bill is paid by the borrower to the credit card company and a small fee known as the service fee is included. However in case of prepaid credit cards with no fees, the service fee or charge is not imposed. The common American consumer has given the concept of credit cards a very nice nick name, that I am particularly fond of, 'buy now, pay later'. Frustrated creditors who sometimes, are never able to recover their debts that they have incurred as a result also term it as 'buy now, pay later or never'. Free Prepaid Credit Cards One thing that we must all bear in mind before we make a prepaid credit cards online application, is that technically the prepaid credit cards, do not work in the same mechanism as the normal credit cards. The concept of prepaid credit is also known as 'store value card'. Here's how the prepaid credit card works. The consumer or the user, opens an account with the credit card company. The amount that is deposited into this account is known as the charge of the prepaid credit card. The user of the credit card can use this 'pre-paid' amount to make payments. The credit card company thus has to just provide the user with the card and thus does not have to bear the risk of late payments, default payments and bad debts. These cards which are with no fees are usually provided to customers of credit card companies who have a reasonable credit history and have availed the credit card services of the company for a specified number of years. Sometimes, these cards are also given to customers who want to improve their credit scores. Some credit card companies have actually come up with schemes and programs which solely provide credit cards for kids or the ones which are used to improve credit ratings. It must be noted these cards are not debit cards and there is a significant difference between the two. The prepaid credit cards cannot be over drawn, i.e.: the payments cannot exceed the limit of the card and secondly, most of them are issued and operated through or by the normal credit card companies. Prepaid Credit Card Application The prepaid credit scheme can be applied in a number of cases and scenarios. One of the most commonly seen application is the prepaid credit cards for kids. This type of credit card is given by the credit card company to their customers so that their kids can easily make use of this card to make payments. The advantage of such a card is that, there is always a restriction or a limit on spending beyond which, no further transactions can be made. People who are planning to buy prepaid credit cards must note that these types of cards which are also given to customers along with the normal credit cards. The second prepaid credit card application that must be noted is the prepaid credit card for the improvement of credit score. The payments that are made through this card are recorded by the credit card company and at the same time they are also recorded by the credit rating agencies. The result is that since the credit card is a prepaid credit card, there is no risk of late payment and every transaction conducted through the credit card boosts up your credit score and your credit report. The best way to apply for these cards is to approach your credit card company. The process is very simple and would not involve any complicated credit history checks. Just fill the prepaid credit cards online form and get the verification done from the company. The prepaid credit card with no fees would be delivered to your door step in a matter of a few days and you would have to deposit an amount with the credit card company and then start using the card.