Prepaid Credit Card and Regular Credit Card

What is the Difference Between a Prepaid Credit Card and a Normal Credit Card

Executive Summary by : Steve Evans

A prepaid card looks like a credit or debit card. Many people are rejected by credit card companies because they have poor credit. You will not have that difficulty with a prepaid credit card.

The problem with today’s society is that a credit card is needed to book hotels, airline flights or shopping online. It is for this reason prepaid cards are becoming very popular.

In particular, a Prepaid Credit Card is a pay as you go credit card. It basically works like a normal credit card (or debit card), except that it’s not associated with a bank account. Unlike traditional credit cards, the Prepaid Credit Card does not extend credit to cardholders. We will make no apology for stressing that your credit rating is not a determining factor when issuing the Prepaid Credit Cards. There is no credit check performed with any credit referencing company and the card is therefore available to all. This opens up an opportunity for those who are normally declined mainstream credit card facilities due to adverse credit, low credit score, or lack of credit history. Even young children can use these cards.

As generally used in the English language, “prepaid” and “credit card” are a contradiction in terms. Whereas, “credit card” means that you will be placing the purchase on credit and the lender (issuing bank) will supply the funds to the merchant. In other words a prepaid card is like a cross between a store gift card and a bank debit card. It is like a bank debit card because it is accepted any place that a major credit card is honored, even online! Unlike a debit card, however, a prepaid card is not attached to a specific bank account.

Types of Prepaid Credit Cards and Credit Cards

Executive Summary by : Clint Jhonson

There are several types of Prepaid Credit Cards as well as regular credit cards. Some of the companies offering Prepaid Credit Cards allow buyers to be as young as 13 years old, but anyone 16 and older can get a prepaid card very easily. Some of the Prepaid Credit Cards like for example Eufora Preferred Credit Builder Prepaid MasterCard have an annual fee of $59.95 but offer a way to start building your credit immediately. Other prepaid cards like Wired Plastic Prepaid Visa Card, Account Now Vantage Debit MasterCard, All-Access MasterCard Prepaid Card, Western Union Prepaid MasterCard, and BuyRIGHT Pre-Paid MasterCard do not have an annual fee. The ones that say you do not need account for having a prepaid card will still have you recharge your card by sending the money and having them recharge the card. A lot of people prefer this type of prepaid card or a secure credit card which is very similar with the prepaid one.

There are credit cards available from people with no credit score to people wit outstanding credit score. There are special credit cards available for college and university students. There is a rewards credit cards category where you can choose form airline, hotel, gas or cash back rewards depending on your personal needs. There are also low interest credit cards and business credit cards. Thus before actually starting filling credit card applications it is important to know which credit cards suits your needs best.