Advantages Of A Prepaid Credit Card
Prepaid credit cards are a great way to get your hands on a credit card without any of the associated risks involved. Prepaid credit cards are ideal for those who are looking to build credit, or have a bad credit history, or have teenagers or children in the household.
These cards work on the same principle as a standard credit card but with one important difference, there is no line of credit. You must first load money onto the card by direct deposit, bank transfer or other methods particular to each issuer. Every time you use the card, the amounts of your purchases are deducted from your balance. It is therefore important to remember the amount left on the card before making any purchases.
Prepaid credit cards are very good for those times when you cannot pay cash, like paying bills online, buying items over the phone and ordering things by mail order. You can also use the card at shops, petrol stations, restaurants, cinemas; in fact anywhere MasterCard or Visa credit cards are accepted.
Since you are not using any credit, prepaid credit cards are instantly approved. There are no credit checks, no bank accounts required, no security deposits and no income verification required. You do require some money to transfer to the card before the card can become active.
Prepaid credit cards are interest free and can be used at ATM's to withdraw cash for when cash is needed. Since you are drawing you own money, you are not charged huge interest like normal credit cards. Having to carry less cash around is an added plus.
The majority of prepaid credit companies will charge either a small monthly fee or a small charge per transaction. Sometimes the fee will be waived if you make regular direct deposits. Some companies will also have a limit on the amount of money that can be loaded onto the card.
If your objective is to establish or rebuild you credit over a period of time, make sure the prepaid card issuer reports cardholder transactions to the credit bureaus like Experian, Equifax, and Trans Union. Not all prepaid credit card companies will report you transactions.
Prepaid credit cards are perhaps the best way to get out of debt. They give you the credit card you must have in todays cashless society but lets you control your spending. You will not loss track of you budget and accumulate a huge debt that you can pay back.
Prepaid credit cards are the ideal solution for children who are turning to teenagers and heading to colleges which will teach them financial responsibility at an early age. Statistics have shown that students usually incur huge credit card debts by the time they are finishing college because of poor financial discipline when they get and use unsecured credit cards.
There are a number of different prepaid credit card offers available so look around before finding the right offer for you. Some of the other benefits you may find are rebate programs, point programs, sweepstake chances, affiliate programs and credit reporting facilities.
For list of prepaid credit cards to select, compare and apply click here Prepaid Credit Cards
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