It has become increasingly difficult to get through modern life with out a credit card. Recently though prepaid credit cards are becoming a popular alternative. These are still payment method cards, and look just like a traditional credit cards. They can be used for all the same purposes such as shopping online, booking reservations, paying bills and taking a vacation. Prepaid credit cards can be used anywhere that the logo on them is accepted. They can also be used to get cash from ATMs. I first found out about these on a trip to Ireland. I needed to pay for things without the hassle of opening another bank account or using my foreign card abroad and face charges. So I ended up getting an Irish visa credit card with a twist!
Prepaid credit cards work much like prepaid cell phones. How much you have to spend is only limited by how much you put on the card. Prepaid credit cards have all the same physical feature as traditional credit cards including company branding, signature area, card number, card holder name and Mastercard/Visa/AMEX logo.
One of the best benefits of using prepaid is that there are no credit checks or the need to have a bank account. Individuals who have previously been denied credit cards based on past credit scores and/or income can easily obtain a prepaid credit card. It also allows the user to keep a better control of their spending and finances. A great deal of the debilitating debt problems that are consumers are facing have been caused by excessive spending on credit. Putting $100 for that new dress on a traditional credit card can eventually end up costing you a lot more, with interest rates and other hidden charges. With a prepaid credit card if you have $100 on your card, you cannot physically spend any more than that $100.
In this way it can be said prepaid credit cards are much safer than traditional credit cards because the limit is decided by the consumer not the bank. This is better for two reasons: firstly banks can up the limit on traditional credit cards with out the card holders consent; this gives you the notion that you have more money than you can actually afford to spend. It is unfortunate but most consumers can not avoid using up their entire credit limit when they have no other choice. With a prepaid credit card they can only spend what they have put on the card. Secondly if the card is lost or stolen, only the amount on the card prepaid can be abused, and this can be claimed back.
Prepaid credit cards are available to pretty much anyone. Your age, credit score, income or even if you are unemployed does not matter. I suppose a good way to look at prepaid credit cards is like a store gift card, except this one can be used in any store and even online! So next time you go away for a long-ish period of time – this might be a great way to save some money and hassle!
