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Prepaid Credit Cards
All About Prepaid Credit Cards
A prepaid or secured credit card works just like a regular credit card. No one will know you are using a prepaid or secured credit card.
Your credit limit on your prepaid credit card is based on the amount of money you have deposited in a bank account. You can charge up to a certain percentage of your account balance.
The prepaid credit card advantage:
- You can easily obtain prepaid credit cards. They can be purchased online or in local retail stores. A prepaid credit card does not require any credit check or proof of income.
The only thing to do is to fill out an application, pay a small fee for setting-up the account and load the prepaid credit card with cash. The amount of cash loaded will be the “credit limit”
- Prepaid credit cards have no over limit penalties.
You can't go over your limit with a prepaid credit card.
- Prepaid credit cards are free from financial or credit problems.
- Prepaid credit cards can be used almost anywhere. Prepaid MasterCards and Visa cards are almost accepted anywhere in the world.
Disadvantages of Prepaid Credit Cards:
- Usually a set-up fee of 5 to 50 dollars is needed when a prepaid credit card account is opened. Then another fee of $5 or more is paid every time more money is loaded onto the card.
Regular credit cards usually do not charge a set-up fee or annual fees.
- Cash up front is needed before any purchase can be made with the prepaid card. This could be an advantage since compulsive spending can be avoided.
- There are some prepaid credit cards that cannot be used to make regular payments such as monthly electric consumption or online services.
The Conclusion:
The prepaid credit card is a definite help for people who have past credit problems. It is just a matter of choosing the right prepaid credit card that suits your needs.
Here are some high quality prepaid and secured credit cards for your consideration:
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