Posts Tagged ‘Prepaid Credit Cards’

What Are Prepaid Credit Cards?

Prepaid Credit cards work just like a debit or credit card. The only difference is that you pay money onto the card first, spend it, but you will not go over any limit, because the only limit is set by what you prepay onto the card.

Unlike the traditional credit card format, you will not acquire any debt with prepaid debit cards as there are no monthly or interest charges.

To apply you do not have to go through any credit checks so almost anyone will be approved for guaranteed acceptance.

You can use just it like a credit or debit card to pay your bills, shop at the supermarket, buy items online and even withdraw cash from ATM machines. They are accepted throughout the world and come in the form of a Visa, Maestro or Mastercard.

Prepaid debit cards are a good solution if:

1. You are struggling with bad credit. If you are struggling to apply for a normal credit card, but need a Visa, Mastercard or Maestro for everyday occasions, a prepaid debit card is ideal. With no credit checks, everyone has guaranteed acceptance.

2. You want to give a gift of money to someone. Unlike normal gift vouchers, these cards are not restricted to just one store and you can use a prepaid debit card (MasterCard or Maestro) in millions of places across the globe.

3. You are planning on traveling abroad. If you do not want the hassle of traveller’s cheques or carrying around a lot of cash, then they are a good solution. They can easily be stopped or blocked if lost or stolen and you will also be able to draw cash out from many ATMS around the world. Some cards even offer 0% on foreign exchange fees.

4. You want to help younger members of the family learn how to manage their own finances. With more and more Britons facing debt troubles, this can be beneficial in teaching your children that you can easily live life without getting credit. Even under 18’s can apply.

5. You want to separate and organise your finances. You can easily keep track of your spending on things like shopping, luxuries, travel, bills or anything else that you can think of.

6. You are having problems opening a bank account. Most bank accounts will come with a debit card, but if you are struggling with bad credit, you may find it difficult to get one. There are no credit checks required, so you have guaranteed acceptance.

Tips On Choosing Prepaid Credit Cards

There are a lot of choices for prepaid debit cards in the UK and most come in the form of a Mastercard or Visa card.

Each card company will have different features and benefits which you should consider before applying:

Some cards will have an annual subscription fee and some with have higher top-up fees than others.

What are the top-up options available?

Find out if you can top up your card at post offices/paypoints etc.

The more top-up options you have the better.

* Is it possible for you to manage the card online and actually see transactions you have made etc?

* Does the card offer a 24hr top-up service, especially for an emergency?

* What kind of protection do you get from the company?

There are many choices available on the market, the card below is the best choice for the benefits outlined below.

Cashplus Gold Mastercard

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Cheap Rate Credit Cards: Relieves a Bit in Repaying Cards

The credit card holder should always learn to restrict themselves from making unnecessary expenses. Often it is being noticed that there remains no bound in shopping and in other expenses when it is about paying money through credit cards. Though it is not being felt while using these but the real pain is realized only when one have to repay all the balances. Moreover, if in addition to that the rate of interest on these cards is higher then the problems get doubled. Therefore, you should always try to secure cheap rate credit cards so that the pressure of repayment gets a bit lightened.

You can go for credit cards that offer 0% interest on new purchases. These cards will let you save great during your first year as cardholder. As the primary year finishes the APR is being adjusted with the regular APR but in that you will not have to pay any annual fee. Though you will not get any reward in these cards but the best thing is that these are good for credit management.

Cards with reward programs can also be adopted. Certain cards use to provide festive offers while some use to have general schemes in order to attract customers. Whatever it is, the profit will be yours only. Some cards even use to provide bonus points based on your each purchase and then after reaching the target bonus points you will be provided gifts. Such credit cards offer good gifts to the card holders and for that purchases would have to be made in certain specific departments. Some of these are like drug stores, super markets, and gas stations.

Before deciding to get the particular cheap credit cards you should go through all the terms and conditions made by its companies. Anything unwanted may also happen to you which you may have not noticed in the forms. So, always be careful in selecting the best credit cards and stay profitable.

Prepaid Credit Cards For Holiday Spending

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Prepaid Credit cards are an easy and save way for anyone who wants to control spending or is worried about fraud and and possible loss.

Especially in busy seasons  like Christmas, year end or holiday times it can be a challenge to keep spending under control. Besides the negative, a prepaid credit card can be a great gift for any occasion too.

Since it is getting increasing difficult to find the right gift, a pre paid credit card can be the answer for any one not sure what to give or running short on time.

Prepaid Credit Cards as Gifts and Control Spending | Wedding …

Giving prepaid credit cards will avoid you from the hassle of choosing items for gifts since you can let the receiver to choose their own gift with the card. It is a unique gift that symbolizes your love and care to your family and …

Prepaid Credit Cards: Basic Things To Take Into Consideration

Prepaid credit cards are said to be very beneficial. They are easy to apply for and to get. In most cases you don’t even have to attach your credit report to the credit card application. But still, before you do that, I suggest that you …

Starting off with Prepaid Visa Credit Cards

If that frightens you from taking another plastic, why not prefer a prepaid visa credit card, or else? These are a kind of credit cards that are now becoming popular. As a matter of fact, several organisations have in any case been …

Related prepaid card articles

• Industry Study: Prepaid Cards Cheaper Than Checking Accounts? (pindebit.blogspot.com)
• Prepaid Debit Cards Are Money Sucking Black Holes In Your Pocket [Hidden Fees] (consumerist.com)

3 Things to Consider Before you Submit That Prepaid Credit Card Application

Ready to send in that prepaid credit card application? You’d better think twice! Some prepaid credit cards aren’t everything they’re cracked up to be. Want to make sure your prepaid credit card application is the right one? Here are three things to consider.

1. What Are They Hiding?

Prepaid credit cards are notorious for hidden fees and charges. That’s why it’s so important to know exactly what you’re in for before you submit any prepaid credit card application. Some prepaid credit cards charge monthly fees, per transaction fees and even fees for when you don’t use the card at all.

Before you sign any prepaid credit card application, make sure you know exactly what fees they will be charging when you get the card. That means reading every line of the terms and conditions very carefully, making sure you don’t miss a thing.

2. Why Do You Want It?

Another thing you need to consider before you send in a prepaid credit card application is what you want the card for. Are you trying to rebuild credit? If that’s the case, you might be surprised to know that most of the prepaid credit cards out there can’t help you do it.

For your credit to improve your credit card company needs to report your account activity to a credit bureau. Unfortunately, the majority of prepaid credit card companies don’t do this. If you do want to rebuild credit, you might be better off with a secured card instead.

Prepaid credit cards are also a problem when booking a hotel or renting a car. Some hotels and car rental companies won’t even accept them. Others will require you to charge a large deposit in addition to the estimated total.

3. Is It a Privacy Thing?

It used to be that prepaid credit cards offered a sense of privacy. You bought the card and then used it — no personal info required. That’s no longer the case. New laws require prepaid credit card companies to collect the same information that traditional credit card companies gather.

If the only reason you’re getting a prepaid credit card is for privacy, a gift card with a credit card logo is a better bet. You won’t have to disclose personal info like you do with a prepaid credit card application.

There are indeed many legitimate uses for prepaid credit cards and they do come in handy at times. I’m not saying you should throw away every prepaid credit card application you’ve considered. Just make sure that a prepaid credit card is really what you’re after. Once you understand exactly what you’re dealing with and what prepaid credit cards will and won’t do, go ahead and send in the prepaid credit card application that’s right for you.

Credit Card For Teens / Students

A prepaid credit card is the credit card for teens or students. Unlike a normal credit card, no credit check is required and there is no chance of your teen running up a large credit card bill.

Perhaps your teen mainly shops online or would prefer not to carry cash but due to a lack of any credit history they can not apply for a regular credit card. (And, let’s face it you probably wouldn’t want them to have one anyway). But, remember, it can be a great way to teach them basic budgeting.

Teens and students often need credit cards for a variety of reasons. They make it easier to purchase a variety of goods and services and are great to have on hand in case of an emergency. But maybe they’re not quite ready for a regular credit card. A prepaid credit card is just what they need.

Advantages of a Prepaid Credit Card

Prepaid credit cards operate more like a checking account with no overdraft facility. Money is prepaid onto the account and cannot be overspent.

The best part of the prepaid credit card is that your teen can charge to their heart’s content and they won’t be in any debt. The money is theirs and once it’s gone, they can’t spend any more until they make another deposit. And you can make deposits on their behalf. There are no bills and no interest charges. It’s the same principle as using a debit card linked to a savings or checking account.

Disadvantages of a Prepaid Credit Card

Well, they’ll have to pay a small fee to set up the account. In addition, they’ll have to pay additional fees every time they deposit more cash into their repaid credit card account. Also note, certain types of service , like a monthly internet subscription may not accept a prepaid credit card.

If you’re looking for a credit card for your teen, consider a prepaid credit card. They have most of the advantages of a normal credit card but you won’t have to worry about your teen getting into debt. And it’s a great way to teach your teens how to budget!