Benefits of Prepaid Credit Cards
Prepaid credit cards are for those individuals who might face some hardship getting approved for an unsecured line of credit but would still like to have all the functionalities and conveniences of a regular charge card.
While some particular features will be in varying form depending on scheme and program, a prepaid card, in general, requires the user to deposit cash or a which will then be used as a secured source of funds for the user to drawn against for so long as a positive balance is maintained.
This variety of credit cards work like regular debit or charge cards; the user can use them at any location that accepts MasterCard or Visa and some will even issue them a personal identification number (PIN) to use to withdraw cash at any ATM, anywhere, anytime.
People who seek to apply for prepaid credit cards are, as usual, concerned about three major determining factors that include the application fee, annual fee and the participation fee.
Annual fees are charges to those who use the prepaid service on yearly basis whereas participation fees are charged to use the service on monthly basis.
People will rarely see a prepaid card that charges both an annual fee and a participation fee.
So choosing between one and the other is simply a matter of deciding factor.
Many people with their family members mainly teens and college students choose prepaid cards because it offers right balance of parental controls and independent decision-making.
Some of the benefits are: oIndependent spending - Prepaid credit cards can be used just like regular credit cards.
What you need to do is that just hand your card to the clerk with signature of your name on the receipt.
Get a copy of the receipt and your card back--and you have no further concern with this process.
oConvenience - Prepaid credit cards can be used any time, everywhere because Visa or MasterCard is accepted at stores, gas stations, restaurants, theaters, in the shopping mall and online.
oBudgeting - You understand very well in advance how much you're spending.
Spending can be managed and controlled by how much money is loaded.
Additionally, prepaid credit cards offer a very simple way to keep track of your money versus carrying cash.
oSafer than cash - Unlike losing that fifty-dollar bill, prepaid credit cards offers protection from unauthorized transactions if the card is stolen or lost by chance.
Cards can be replaced if lost or stolen.
oTeaching tool - Prepaid credit cards help you or your teens understand financial responsibility and learn good money management skills.
This card contains a hands-on tool that teaches teens about controlling finances and managing it.
You can monitor the balance and track location where the card is used.
It is possible either by going to your password-protected Web site and reviewing the transaction history and online statement in detail or by telephone.
While some particular features will be in varying form depending on scheme and program, a prepaid card, in general, requires the user to deposit cash or a which will then be used as a secured source of funds for the user to drawn against for so long as a positive balance is maintained.
This variety of credit cards work like regular debit or charge cards; the user can use them at any location that accepts MasterCard or Visa and some will even issue them a personal identification number (PIN) to use to withdraw cash at any ATM, anywhere, anytime.
People who seek to apply for prepaid credit cards are, as usual, concerned about three major determining factors that include the application fee, annual fee and the participation fee.
Annual fees are charges to those who use the prepaid service on yearly basis whereas participation fees are charged to use the service on monthly basis.
People will rarely see a prepaid card that charges both an annual fee and a participation fee.
So choosing between one and the other is simply a matter of deciding factor.
Many people with their family members mainly teens and college students choose prepaid cards because it offers right balance of parental controls and independent decision-making.
Some of the benefits are: oIndependent spending - Prepaid credit cards can be used just like regular credit cards.
What you need to do is that just hand your card to the clerk with signature of your name on the receipt.
Get a copy of the receipt and your card back--and you have no further concern with this process.
oConvenience - Prepaid credit cards can be used any time, everywhere because Visa or MasterCard is accepted at stores, gas stations, restaurants, theaters, in the shopping mall and online.
oBudgeting - You understand very well in advance how much you're spending.
Spending can be managed and controlled by how much money is loaded.
Additionally, prepaid credit cards offer a very simple way to keep track of your money versus carrying cash.
oSafer than cash - Unlike losing that fifty-dollar bill, prepaid credit cards offers protection from unauthorized transactions if the card is stolen or lost by chance.
Cards can be replaced if lost or stolen.
oTeaching tool - Prepaid credit cards help you or your teens understand financial responsibility and learn good money management skills.
This card contains a hands-on tool that teaches teens about controlling finances and managing it.
You can monitor the balance and track location where the card is used.
It is possible either by going to your password-protected Web site and reviewing the transaction history and online statement in detail or by telephone.
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