Prepaid Credit Cards
People can very easily find themselves in a large amount of debt
through misuse of credit cards. With no one to overlook the extent
of your spending you can quite easily max out credit card after
credit card to the limit. The idea behind a prepaid credit card
is to assist people that have built up debt through credit cards,
to gain responsibility for their finances again. People get used
to using a credit card to pay for their purchases again but since
they front the funds for the card they can’t get into debt.
Eventually, having had the prepaid credit card for a while, you
can go back to a credit card company and show that you are now more
responsible, and they may just let you take on a “real”
credit card where you don’t have to prepay before you use
the card.
It can also be a way to introduce your children or a partner that
is poor with money management to credit cards. The ideal feature
of a pre paid credit card is that you set the limit by putting the
cash up front and then the user of the card cannot build up debt
beyond your funding power.
Advantages of prepaid credit cards:
· All you have to do is fill out a short application, pay
a small set-up fee, and load the card with cash (this amount will
be your "credit limit").
· They're exceptionally easy to get. You can purchase a
prepaid credit card online or at many local retail stores with no
credit check or income requirements.
· There are no interest charges. When you use your prepaid
MasterCard or prepaid Visa, you're not borrowing any money. The
fact is you're using your own money so you pay no interest!
· You can use them almost anywhere. A prepaid MasterCard
or VISA can be used virtually anywhere VISA and MasterCard are accepted.
· It's an easy and safe way to carry your money. It works
like a credit card, but acts like cash. Because you prepay, there
is no application process or credit approval. Best of all, it's
available from a collection of companies that you can trust.
With a prepaid credit card you can carry your money safely and
conveniently,
Shop wherever MasterCard® debit cards are accepted including
online, rent a car or make travel reservations. Any authorization
request that is greater than your Card’s available balance
will be declined. However, there can be times when a merchant puts
an item through without prior authorization. This could cause a
negative balance on your account. If an overdraft occurs, you may
well be charged an overdraft fee.
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