Prepaid credit cards are a great way to get your hands on a credit card without any of the associated risks involved. Prepaid credit cards are ideal for those who are looking to build credit, or have a bad credit history, or have teenagers or children in the household. Prepaid means you load money onto your cards before you can spend it.
You can deposit money by bank transfer, direct debit or other arrangements as detailed by each provider. When you make a purchase, the amount is deducted from your card. You can only spend what you deposit therefore no credit no debt. You can use you prepaid credit card anywhere MasterCard or Visa credit cards are accepted like shops, restaurants and gas stations. They are particular good for time when cash cannot be used like ordering good online, paying bills over the phone or buying mail order items. Prepaid credit card companies accept all applicants and offer instant online approval.
No credit checks are performed, no salary declarations, no security deposits and no need to open a bank account. Some money will need to be transferred to the card before the card can be used. Prepaid credit cards are interest free and can be used at ATM's to withdraw cash for when cash is needed. Since you are drawing you own money, you are not charged huge interest like normal credit cards.
Having to carry less cash around is an added plus. There will be some costs in owning a prepaid credit card. Most companies will require a small monthly fee or charge a cost per transaction.
Depending on how often you use the card will determine the best method for you. If you make recurring direct deposits, these fee maybe waived. Most of the cards will have a maximum limit on the amount loaded onto the card.
Not all prepaid credit card offers will report you transaction to credit bureaus. So if you are looking to rebuild or starting your credit history; look for card that report the cardholder's transactions to credit bureaus like Equifax, Trans Union or Experian. With traditional credit cards, it is easy to loss track of your spending and build-up large debt, because the temptation is to just pay the minimum amount and worry about the debt until next month. With a prepaid credit card you must control your spending since you must repay the balance if you wish to continue to use the card. Prepaid credit cards are the ideal solution for children who are turning to teenagers and heading to colleges which will teach them financial responsibility at an early age.
Statistics have shown that students usually incur huge credit card debts by the time they are finishing college because of poor financial discipline when they get and use unsecured credit cards. There are a number of different prepaid credit offers available so look around before finding the right offer for you. Some of the other benefits you may find are rebate programs, point programs, sweepstake chances, affiliate programs and credit reporting facilities.
Looking for a prepaid credit card? Search, compare and apply now. Visit Prepaid Credit Cards Guaranteed. To search other credit cards types visit here Compare Credit Card Online