What Are Prepaid Credit Cards?
Money; specifically credit is something many of us are uncomfortable talking about. It can be tough getting approval for a credit card, especially if you have had some credit problems in the past or worse yet, if you have no credit history. No matter the reason, it can be distressing to be rejected for a credit card. You can work towards building a credit history while having all of the benefits offered by a credit card by using a prepaid credit card.
So, what exactly is a prepaid credit card? Well, it's basically an account that can be reloaded that is accepted any place that you might use a traditional credit card. The individual card holder will deposit money into their account before making any purchases. If you have money in your account then you are free to spend with your prepaid card. Like a traditional charge card your prepaid card will have a spending limit set which is determined by how much you have deposited into your account, and how often you are able to deposit money.
A prepaid card will give you several benefits that you can enjoy. The first is that you'll be able to develop a sense of spending freedom. With you're prepaid card you'll be able to buy anything from any store that regularly accepts credit cards.
A prepaid credit card is very helpful in keeping your spending under control. You can only spend as much as you have deposited in your account, so it is impossible to get yourself into credit card debt by overspending. A prepaid credit card is also a good way to begin learning about managing your financial life responsibly.
You are also largely insulated from identity theft when using a prepaid credit card. Whether you are buying in person, online or over the phone, you can rest assured that even if someone gets a hold of your credit card number, your other accounts are perfectly safe; they can't run up huge bills on your prepaid credit card.
How do you get a prepaid credit card? You'll have to pay a fee to set up the account; this is usually somewhere between $5-$10. There are also some small fees associated with deposits as well. These fees are small, but well worth it to control your spending and help build your credit.
Let's face facts, we live in a credit driven world today. It seems like you can't do anything without a credit card these days. So if you want to be able to function in this world you need to find a way to have access to a credit card. For those who are struggling with bad credit, or want to keep better tabs on their spending then a prepaid card might be exactly what you're looking for!
So, what exactly is a prepaid credit card? Well, it's basically an account that can be reloaded that is accepted any place that you might use a traditional credit card. The individual card holder will deposit money into their account before making any purchases. If you have money in your account then you are free to spend with your prepaid card. Like a traditional charge card your prepaid card will have a spending limit set which is determined by how much you have deposited into your account, and how often you are able to deposit money.
A prepaid card will give you several benefits that you can enjoy. The first is that you'll be able to develop a sense of spending freedom. With you're prepaid card you'll be able to buy anything from any store that regularly accepts credit cards.
A prepaid credit card is very helpful in keeping your spending under control. You can only spend as much as you have deposited in your account, so it is impossible to get yourself into credit card debt by overspending. A prepaid credit card is also a good way to begin learning about managing your financial life responsibly.
You are also largely insulated from identity theft when using a prepaid credit card. Whether you are buying in person, online or over the phone, you can rest assured that even if someone gets a hold of your credit card number, your other accounts are perfectly safe; they can't run up huge bills on your prepaid credit card.
How do you get a prepaid credit card? You'll have to pay a fee to set up the account; this is usually somewhere between $5-$10. There are also some small fees associated with deposits as well. These fees are small, but well worth it to control your spending and help build your credit.
Let's face facts, we live in a credit driven world today. It seems like you can't do anything without a credit card these days. So if you want to be able to function in this world you need to find a way to have access to a credit card. For those who are struggling with bad credit, or want to keep better tabs on their spending then a prepaid card might be exactly what you're looking for!
About the Author:
Steven J. Talrechi is a veteran on credit for over 10 years. He authors various topics on said field, including applying for a credit card, and different credit card offers.
posted by Debt Consolidation Loan at
12:20 PM
0 Comments:
Post a Comment
Subscribe to Post Comments [Atom]
<< Home