Do You Know What Prepaid Credit Cards Are?
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.
How does a prepaid credit card work? A prepaid credit card is an account which can be refilled and uses a card which is accepted anywhere that a traditional credit card would be accepted. You need to deposit money in this account before you will be able to make purchases using this card. Just like any other charge card, there is a limit to your spending; in the case of a prepaid credit card, this limit is dependent on the amount you have deposited in the account.
A prepaid credit card offers all of the convenience of a regular charge card. You can use it in the same way at the same places.
Prepaid credit cards are also a great way to keep a handle on your spending habits. Since you can only buy what you have already deposited enough to afford, you are keeping yourself from overspending and getting into credit card debt. A prepaid credit card is also a good learning tool which can show you how to manage your finances.
Additionally, a prepaid credit card will give you the peace of mind that no one is going to be able to get a hold of your credit card numbers. This way, if you're purchasing things over the phone or internet you can rest assured that no one will have any way to access your other accounts and money.
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.
Ours is a credit driven economy ? you need a credit card to do just about anything. It's hard to do even function without one. However, if you have bad credit, are trying to build a credit history for yourself or just want to keep your spending to a limit, then you might find that a prepaid credit card is perfect for you.
How does a prepaid credit card work? A prepaid credit card is an account which can be refilled and uses a card which is accepted anywhere that a traditional credit card would be accepted. You need to deposit money in this account before you will be able to make purchases using this card. Just like any other charge card, there is a limit to your spending; in the case of a prepaid credit card, this limit is dependent on the amount you have deposited in the account.
A prepaid credit card offers all of the convenience of a regular charge card. You can use it in the same way at the same places.
Prepaid credit cards are also a great way to keep a handle on your spending habits. Since you can only buy what you have already deposited enough to afford, you are keeping yourself from overspending and getting into credit card debt. A prepaid credit card is also a good learning tool which can show you how to manage your finances.
Additionally, a prepaid credit card will give you the peace of mind that no one is going to be able to get a hold of your credit card numbers. This way, if you're purchasing things over the phone or internet you can rest assured that no one will have any way to access your other accounts and money.
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.
Ours is a credit driven economy ? you need a credit card to do just about anything. It's hard to do even function without one. However, if you have bad credit, are trying to build a credit history for yourself or just want to keep your spending to a limit, then you might find that a prepaid credit card is perfect for you.
About the Author:
Steven J. Talrechi is a veteran on credit and finance for more than 10 years. He authors various topics on said field, including application for a credit card, and different credit card offers.
posted by Debt Consolidation Loan at
4:37 AM
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