Categories
credit credit card credit history credit profile

Prepaid Credit Cards – An Overview

Properly, credit cards can be prepaid at merchants you are able to obtain from participating merchants. Like debit cards, prepaid credit cards have an amount limit that can be accruingly increased depending on your existing credit profile. Most prepaid credit cards do not require any cash advance fees and do not require credit limit to be increased. You must carry a balance in your prepaid credit card account while you are using your prepaid credit card.

A prepaid credit card would work with you not like your cash advance being blocked by your current credit profile.

What a difference a prepaid credit card makes to your existing credit profile

If you plan to use your prepaid credit card for shopping or spending your paycheck, you could set up a prepaid debit account with your bank and create a line of credit just for your prepaid credit card. With your prepaid credit card, you deposit money into a line of credit, which depreciates in value each month. Thus, once your line of credit reaches zero, you may only spend the amount you have deposited in your prepaid account. If you are planning to use an ATM, the amount of money you will be able to spend using your prepaid credit card will be determined by the amount of cash you deposit. The higher the amount you pay in cash advances, the higher your spending limit. As a consequence, you will be able to afford to spend more if you use your prepaid credit card for spending.

How does your prepaid credit card impact your credit history later on?

Your credit history with your bank will be impacted with the purchases you make with your credit card. Banks provide credit checks to those who successfully pass a general credit examination and you will get permission to deposit funds into your prepaid account for purchases.

The fees and conditions for using your prepaid credit card are actually very low. There are no set-up or program-specific fees; at the time you make your purchases, a utility credit card for emergency cash is also provided.

What is a utility credit card?

A utility credit card is a prepaid debit credit card credit facility that offers new users, generally an introductory low-cost low-interest rate credit card for a defined period of time, free of any annual or introductory fees to use it.

A utility card is a prepaid debit credit card credit facility that is accepted at regular ATM’s and at your selected transaction ATM. Customers use your prepaid credit card to pay all or part of any bills on their account and to purchase services and merchandise they do not have to pay or which they will purchase within the company’s designated credit limit. No fees are associated with the usage of your utility credit card.

What is a utility credit card?

Utility credit cards are marketed as utility cards and will require less upfront expenses than credit cards that charge a high limit. When used appropriately, utility cards are an ideal choice for those who will be using their debit credit card a lot and will be required to pay the company more upfront fees, a lower charge and generally will not have a history of bad credit or a poor credit history.

If you do not qualify for high-rate credit before the fixed-limit introductory period expires in the first year you may end up paying an annual fee, a set-up fee that can mount up to hundreds of dollars because you are limited to use your card for only one product and a high-rate of credit for a limited percentage of the available time. Also, there are many cards such as the platinum version of the platinum utility card that will not require additional capital before the fixed-limit introductory period expires.

What are the fees associated with a prepaid credit card?

Any fee or service you may deposit into your prepaid account when making purchasing service or merchandise at the retailer’s retail establishment is subject to the charges and may be applied against your balance as part of your actual transaction. Some prepaid credit cards charge an annual fee in addition to the pre-paid amount as your introductory service and/or merchandise charge may be added on top of this.

What if I don’t use my card?

If you don’t want to pay the 0.00% rate for which you deposit funds to use your prepaid account, you may try to do so by applying for an inexpensive credit card. Such a card may offer a low or no-interest introductory rate, allowing you to deposit funds to continue spending the card.

Here are some tips on how and how to pick the best prepaid credit card for your needs:

Use your prepaid credit card to pay bills and purchase service for almost any item you’d like to purchase: groceries, prescriptions, clothing, gas, medical bills, groceries, prescriptions for prescriptions, and gas and oil while you’re spending with your credit card. If you are going to pay the minimum monthly payment, you’ll be able to afford to pay those bills while still saving some money.