Prepaid credit cards
Guess what? You no longer have to worry about your bad credit record keeping you from owning a credit card.
Prepaid credit cards have made it possible for you to get a credit card without filling out lengthy and demanding credit card applications.
No application forms required
You don’t have to apply for a credit card to buy an air ticket or pay for dinner at a restaurant. All you need is a prepaid credit card and a bank account. When a prepaid credit card is issued, no employment verifications are made or credit checks conducted.
Prepaid credit cards are ideal for parents who want their teens to have an option for making purchases with built-in spending limits. They allow parents to keep a close watch on their kids’ financial activities and expenses.
It keeps your debts at zero
With prepaid credit cards, you won’t keep spending until you owe more than you have. You spend only up to the amount you’ve transferred from a bank account and not a penny more. This keeps your debts at zero. You use prepaid credit cards just as you would use any other credit card. The difference is that even those with bad credit records can enjoy the convenience that credit cards provide.
No interests are applied
With prepaid credit cards, you need not worry about monthly bills or interest rates. You can deposit as little as $5 into an account and will only be charged a nominal service fee for the prepaid card. Prepaid credit cards are interest free.
How to use prepaid credit cards
You use a prepaid credit card just like you would a normal credit card. You choose the item to purchase, run your card at checkout, and sign the vendor’s copy of your receipt. These cards can be used at any stop, including ATMs, where MasterCard or Visa cards are accepted.
Safer than cash
Prepaid credit cards are a safer mode of payment than loose cash, which can be lost or stolen and never returned. If you lose your prepaid credit card, on the other hand, you can have it replaced by reporting it to the issuing bank’s customer service center, who will cancel the card to prevent unauthorized use and then reissue a new one.
You can use it online
Prepaid credit cards can also be used for online shopping. You don’t have to worry about thieves and hackers stealing excessive amounts from your account because you only deposit money according to your spending needs.
Easily traceable transaction records
Prepaid credit cards are the right answer for people who don’t want to have debts to pay off later and don’t want to carry cash. Like any regular credit card, you can keep track of all transactions made by reviewing your statement, which records the date, merchant, and item for each purchase, so that you know exactly where your money has gone.
Loading prepaid credit cards is quick and easy
Unlike debit cards, with which there’s always a chance of overspending and incurring fees due to an overdraft of account balances, prepaid credit cards are totally separate from funding accounts. You can load or feed money into your card account via wire transfer, online deposit, check, or other money transfer services.
