Most prepaid credit cards today are cards that are intended for ‘regular’ use only. This is where merchants use cards to send customer shopping on their purchases and make it impossible to spend money by doing so. Many times they are advertising freebies or free gifts or promos or discounts or card features like airline miles or hotel reservations.
If you are considering a prepaid credit card then you check out the features, including fraud protection, high credit balances, and a method for reducing purchases that you believe to be beyond the benefits you are offering. Remember the different types of purchases of prepaid credit cards may not be exactly the same because the amount being spent on each card may not match the amounts being spent on the card.
Prepaid credit cards are one answer to help those consumers that are in a financial crunch or in a mess. Though prepaid credit cards can cost a heavy portion of your budget, you can often help get bills paid and save yourself money.
Prepaid Credit Card: The Best Way To Avoid Credit Card Debt
With the growing popularity of credit cards in many households, many people are opting for a prepaid debit or credit card. Simply put, a prepaid debit or credit card allows you to make purchases online or over the Internet directly from the consumers’ checking and savings accounts.
How Does it Work?
Pregnant women can swipe their credit or debit card to make purchases online or over the Internet. Prepaid credit cards can also be used in conjunction with their credit to make online purchases and credit card purchases.
There is no set deadline for making approved or rejected payments on its opening statement. You must deposit one dime in the checking or savings account for each installment. Payments charged to the prepaid credit card are sent to the cardholder in the form of a prepaid credit card bill.
Who Is Using It?
Possible reasons include:
1. Paying off my credit card balance; 2. Crediting a credit card that I have used on the Internet with the promise it would be coming and refund any balance I owed (if any). 3. Crediting a credit card that I purchased from a drugstore vendor that I approved for instant approval. A prepaid card, on the other hand, requires that you obtain your card from the cardholder’s checking or savings account. No bill is received before the bill is due.
Why Is It Good For
There are instances when its benefits outweigh the costs. For example, say I am a student and I rent a car, but in the process of making reservations for class transportation, a prepaid car carrying my student credit card bill leaves my checking or savings account. No payment is made that day, and the dealer cancels the rental car.
A prepaid credit card requires you to deposit two dime (1) in the checking or savings account that is used in making online purchases and credit card installment installments for college education. Paying off the balance before the bill gets to the cardholder’s checking or savings account eliminates the need for a cash advance.
How It Works
A prepaid credit card is a good alternative if you use your prepaid credit card while on a trip because you are aware of the trip, and have enough money to pay off the balance without accruing any interest charges. Additionally, if you use the prepaid credit card while renting a car, you will know that the trip is over when the rental car arrives in the mail. A prepaid car does have an outstanding travel record, but only if you pay off the balance promptly.
Prepaid credit cards are not checks in disguise.
Why Pay Off The Balance Before It May Not Be Worth It?
A prepaid credit card is not a substitute for a monthly account that you make with a credit card company. If you use your prepaid credit card during a trip to buy a new car or college education, you will be paying off almost all of the debt. As the bill arrives in your mailbox, paying interest on the outstanding debt and the associated expenses is nearly impossible to accomplish with a prepaid credit card. In addition, you will face the continued necessity of raising your student credit card debt each month. This will not only delay the school year, but it will also lead to an increase in your interest rate, which probably will cause you to make even less income for the next ten years.
What About Bankruptcy?
In addition to having virtually no chance of success, when it comes to bankruptcy, the only court that deals with credit problems may crack down on the practice by instituting a nullification factor.