he following article rental car, you can use a prepaid
covers a topic that has credit card just as you would a
recently moved to center standard credit card. Many
stage, least it seems that way. lenders offer prepaid MasterCard
If you've been thinking you need or Visa cards that look exactly
to know more about it, here's like the regular cards. Neither
your opportunity. you nor the store clerk will be
able to tell the difference.
Do you need a prepaid credit
card? The concept of prepaid credit
cards is really very simple. You
Not everyone can qualify for a open an account and "pre-load"
credit card. With past credit the card with cash up-front,
problems such as bankruptcies, similar to a pre-paid calling
repossessions, or even divorces, card. Then you use your prepaid
some people do not meet the MasterCard or Visa anywhere these
stringent qualifications set cards are accepted.
forth by credit companies to
receive a line of credit. To receive a card, fill out the
However, there is a way to get lender’s application and open an
your foot in the credit doorway account. You are required to
without the best credit history: deposit a minimum balance to
a prepaid credit card. begin your line of credit. After
your account is established, you
How does a prepaid credit card can use your card to charge items
work? up to your balance limit.
Whether making a last-minute Now that we've covered those
utility payment, completing an aspects of credit card, prepaid
online purchase, or reserving a credit card, credit card payment,
let's turn to some of the other
factors that need to be 5. You can use your prepaid card
considered. anywhere they accept MasterCard
or Visa cards.
Advantages of prepaid credit
cards: Disadvantages of prepaid credit
cards:
1. A prepaid credit card is easy
to get. It requires no other 1. Prepaid cards can be expensive
qualifications other than your to establish. A set-up fee of $5
down payment. The cards are to $50 is charged when you make
available online and at several your opening deposit, and an
retail stores. additional fee is charged every
time you add more money to your
2. Your credit limit is account. These fees, on top of
completely under your control. the money you have to put up to
You can have as high a limit as get the card in the first place,
you wish, as long as you deposit can be prohibitive to someone on
the cash to meet it. a tight budget.
3. With the prepaid card, there 2. With a standard credit card,
are no interest charges or annual you wouldn’t be charged a set-up
fees. fee or an annual fee. Although,
the interest you would be charged
4. When you use your card, you on your credit card payment would
aren’t accumulating any more make up for this in the long run.
debt. In fact, by making your
credit card payment on time, you
are actually improving your 3. The money you put down in the
credit rating. beginning is often a big
deterrent to people in need of a excellent solution if you have
line of credit. However, if you had past credit problems or have
tend to spend over your credit difficulty getting a regular card
limit, this system of only for some reason. But it’s vital
purchasing what you can afford that you practice good financial
may be a good way to retrain your habits along with owning the
spending habits. card.
4. Some service providers will Make your credit card payment on
not accept prepaid cards for time and in full. Manage your
automatic payments. Check with money with a budget and start a
customer service departments small savings account for
before you make plans to pay with emergencies. If you use your
your new card. prepaid card and pay it
regularly, you will eventually
Conclusion offset some of the mistakes you
made in your financial past.
A prepaid credit card can be an
About the Author:
Carmin Olivier is the webmaster of http://www.findyourcreditcards.com where you can find "The Best US Credit Card Deal on the Internet! If You're Looking for Good Credit Card Deal visit http://www.findyourcreditcards.com
