Have you been burned by too much credit debt lately? Too scared of credit? Had enough of credit card debt? If plastic was a way of life for you personally and you're thinking of buying good alternative that is as convenient and simple to use, then a prepaid credit card may be the perfect choice. What are prepaid charge cards? If you've used a prepaid telephone card or sim card before, then you already have a basic idea of how a prepaid card works. You just need to 'load' it with money after which use it as you would any regular charge card. It can be used to spend your purchases at any store and it is accepted for many online transactions. You may even withdraw cash from any ATM. Essentially, a prepaid card functions as a debit card, except that a prepaid card is a separate account. A debit card is associated with either a savings or a bank account. You just need to open a prepaid card account and deposit money, just as if you would with a regular bank accounts. After you pay
the fees, that could amount from $5 to $50, the bank then issues you a prepaid card. Many banks offer prepaid credit credit cards under Visa or Mastercard. Other companies include Western Union, Greendotonline and Hurry Card. Prepaid credit cards can additionally be purchased at selected stores, malls as well as gas stations. Where's the credit? The term 'prepaid credit card' is most likely a misnomer because there's no credit involved if you use it in any transaction. With credit cards, you pay with the money you do not yet have, but which your banker or charge card company guarantees for you. With a prepaid card, you only spend the money a person loaded the card with. For instance, if you have $300 on your prepaid card, you can't purchase a $325 product. It's that simple. Who can use a prepaid card? A prepaid credit card is a good tool that will help you curb your shopping expenses. It can also be a good alternative to a regular charge card that you didn't get due to bad
credit or for just about any other reason. A prepaid credit card enables you to enjoy the usage benefits a regular charge card can offer. AdvantagesSpending limit - a prepaid card will only allow you to spend the total amount that is left on your accounts, nothing more. You don't have to visit beyond a credit limit because the only real limit you have is self-imposed. If you load just $500 on your prepaid card account monthly, that's the amount you will get to spend, until the next period you load it again. Absence of debt - regular charge cards let you 'charge' purchases and then pay them back later on in full or make a minimal payment with interest. Every time you use credit cards, you incur a debt. With a prepaid card, you don't charge purchases, but purchase them outright, on cash basis. You also don't have to worry about monthly billing statements. Fast processing - you're not necessary to undergo a credit check and there isn't any waiting to get your prepaid charge car
d approved. There is also no grow older limit. DisadvantagesSpending limit - the advantage of a prepaid card is also a disadvantage. While regular credit cards permit you to buy large purchases (such as home appliances and furnitures), a prepaid credit card limits your buying capacity to the amount currently deposited in your own prepaid account. Once it's gone, you cannot buy more until you deposit cash into that account. Fees - any time you make a deposit to your accounts, you pay an additional but minimal fee. Some prepaid cards also ask you for a minimum fee for every deal. Limit of use - you can't use a prepaid card to pay regular automatic payments plus some smaller retailers don't accept transactions created using prepaid credit cards. A prepaid card will even not help you establish your credit score, much less rebuild it.
Mario Churchill is really a professional analyst of the credit card industry and writes articles associated with credit card applications [http://www.i-want-a-credit-card.com] and charge cards [http://ezinearticles.com/?Finding-And-Getting-Low-Interest-Credit-Cards&id=480651] in general.
View this post on my blog: http://creditcard.valuegov.com/loaded-and-ready-to-buy-what-prepaid-credit-cards-are-and-how-they-work/
the fees, that could amount from $5 to $50, the bank then issues you a prepaid card. Many banks offer prepaid credit credit cards under Visa or Mastercard. Other companies include Western Union, Greendotonline and Hurry Card. Prepaid credit cards can additionally be purchased at selected stores, malls as well as gas stations. Where's the credit? The term 'prepaid credit card' is most likely a misnomer because there's no credit involved if you use it in any transaction. With credit cards, you pay with the money you do not yet have, but which your banker or charge card company guarantees for you. With a prepaid card, you only spend the money a person loaded the card with. For instance, if you have $300 on your prepaid card, you can't purchase a $325 product. It's that simple. Who can use a prepaid card? A prepaid credit card is a good tool that will help you curb your shopping expenses. It can also be a good alternative to a regular charge card that you didn't get due to bad
credit or for just about any other reason. A prepaid credit card enables you to enjoy the usage benefits a regular charge card can offer. AdvantagesSpending limit - a prepaid card will only allow you to spend the total amount that is left on your accounts, nothing more. You don't have to visit beyond a credit limit because the only real limit you have is self-imposed. If you load just $500 on your prepaid card account monthly, that's the amount you will get to spend, until the next period you load it again. Absence of debt - regular charge cards let you 'charge' purchases and then pay them back later on in full or make a minimal payment with interest. Every time you use credit cards, you incur a debt. With a prepaid card, you don't charge purchases, but purchase them outright, on cash basis. You also don't have to worry about monthly billing statements. Fast processing - you're not necessary to undergo a credit check and there isn't any waiting to get your prepaid charge car
d approved. There is also no grow older limit. DisadvantagesSpending limit - the advantage of a prepaid card is also a disadvantage. While regular credit cards permit you to buy large purchases (such as home appliances and furnitures), a prepaid credit card limits your buying capacity to the amount currently deposited in your own prepaid account. Once it's gone, you cannot buy more until you deposit cash into that account. Fees - any time you make a deposit to your accounts, you pay an additional but minimal fee. Some prepaid cards also ask you for a minimum fee for every deal. Limit of use - you can't use a prepaid card to pay regular automatic payments plus some smaller retailers don't accept transactions created using prepaid credit cards. A prepaid card will even not help you establish your credit score, much less rebuild it.
Mario Churchill is really a professional analyst of the credit card industry and writes articles associated with credit card applications [http://www.i-want-a-credit-card.com] and charge cards [http://ezinearticles.com/?Finding-And-Getting-Low-Interest-Credit-Cards&id=480651] in general.
View this post on my blog: http://creditcard.valuegov.com/loaded-and-ready-to-buy-what-prepaid-credit-cards-are-and-how-they-work/
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