Prepaid Credit Card-What You Should Know

The Truth About Prepaid Credit Cards

Executive Summary By Morgan Hamilton

prepaid credit card

Prepaid credit cards are basically credit cards backed by major credit card companies that offer you the ability to deposit money onto the card and then use it for purchases.

No Credit Checks

One great thing about prepaid credit cards is that there is usually no credit check required. This makes prepaid credit cards ideal for those with lousy credit scores or even those without any previous credit to build their credit.

Many prepaid credit cards offer no APR on money deposited and your purchases. Some do charge high interest rates on your balances however, so beware.

Fees

Just like the bank, some prepaid credit cards charge fees on your transactions. Some prepaid credit cards will charge you ATM fees or cash withdrawal fees. These are the most common fees with prepaid credit cards. The truth is, prepaid credit cards are responsible ways to spend money. Prepaid credit cards can also offer reward programs and other incentives similar to regular cards. As with any credit card, make sure your prepaid credit cards have terms which with you agree.

Learn About Prepaid Credit Card

Executive Summary by David Hall

Prepaid credit cards also called stored value card can be ideal for individuals who are unemployed, have bad credit or difficulty obtaining an unsecured credit card. Prepaid credit cards are also excellent for individuals who have a hard time controlling their spending and prevent the individual from overspending and getting into credit card debt. It is very easy to obtain a prepaid credit card because there is no credit check or employment verification since the funds you will be using are yours and not that of the prepaid credit card issuer. Prepaid credit card spending limit or credit line is the amount of money you loaded to your prepaid credit card account. Prepaid credit card carries the Visa or MasterCard logo. With a prepaid card this will never happen since the prepaid card holder is not borrowing any money and can only spend the amount of money loaded to their prepaid account.

With prepaid credit card there are no interest charges because you are using your own money.

Prepaid Credit Cards 101

Executive Summary by Caitlina Fuller

Most of us find that a credit card is important in our daily life. Whether it be for emergencies or other spending it is really hard to live without a credit card. Many companies like satellite TV require you to have a major credit card in order to be approved for service. Not to mention hotels, airlines, car rentals and many other related services also require a major credit card. So, having a credit card is very important. Now, many of us can’t receive traditional credit cards because are credit rating is so low or because we don’t have any credit at all. The option is with prepaid credit cards.

Prepaid credit cards look and act jut like a traditional credit card. They are little plastic cards with your name on them that can’t be distinguished as a prepaid card. For example, if you have $500 on your prepaid credit card then you can only spend up to $500. There is no interest associated with prepaid credit cards, no over the limit fees, no late fees, and nothing that will negatively impact your credit rating or your credit. The only thing that you will have to pay are the fees associated with the prepaid credit card. This means the loading fee will be charge when you deposit money to your card, also fees are charged when the card is used at an ATM, and sometimes a fee is charged if the money is not spent within a certain period of time.

There are some drawbacks to prepaid credit cards. One of them is that you must have the money up front in order to load the credit card. You don’t really have any “credit” to speak of with these types of cards but rather deposit your money in order to have a credit card.