In case you are thinking of acquiring a prepaid credit card but you are reluctant to do it, this post is written for you.
What would be the advantages of prepaid credit cards? Why should you consider a prepaid debit card over a regular card?
No credit check required.
If you have no credit history, it’s not easy to acquire approved to get a regular credit card. At the same time, those that have bad credit or low credit score may be declined whenever they forget to meet the issuer’s credit requirement. With prepaid debit cards, you don’t need to bother about rejection. Whether you want to establish credit rating or want to improve low credit, use a prepaid debit card to do exactly that.
Controlled spending.
Because prepaid credit cards do not provide credit lines, it would be easier to track and control spending. With a regular credit card, it is too easy to charge purchases to your account until debt builds up and repayment becomes difficult. By using a prepaid account, the risk of bad debt is greatly lessened.
No interest fees.
Since purchases are not made in advance, there is no need to worry about incurring interest charges. APR charges can range from 10% to 19% or higher, depending on the type of credit card you’re using. With prepaid debit cards, this extra cost is completely eliminated.
Establish or build credit.
Issuers of prepaid debit cards today report credit activities to the three major credit bureaus – Experian, Equifax, TransUnion so they can now be used for establishing credit or rebuilding bad credit.
Widely accepted.
Prepaid cards are accepted at stores and establishments that accept credit card payment. If you prepaid card bears the VISA or MasterCard logo, you can be assured that your payment will be accepted without question. In fact, you can use your prepaid card to shop online or make reservations from the internet.
Safer mode of payment.
Shopping over the internet can be risky when using a regular credit card since it is connected to your bank account. On the other hand, using a prepaid credit card is much safer because you do not need to reveal any banking information.
Great for travelers.
If you’re a frequent traveler, carrying cash on your trip can be risky. By using a prepaid debit card, you do not need to bring a large amount of cash. In case the card gets lost or stolen, you can easily call up your issuer to have the account blocked against unauthorized transactions.
These are just some of the benefits that you can enjoy from prepaid debit cards. As a final reminder, choose a prepaid card with a minimal set of fees. You can easily compare prepaid cards by checking out credit card review websites. This way, you will be able to check the specific fees that you need to be aware of and you can read the Terms and Conditions of the issuer as well.
