Do you Need Prepaid Credit Cards

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With prepaid credit cards, one can avoid credit card debt yet get the best of credit cards.

Prepaid credit cards don´t put you at risk of unwelcome debt. For those who understand the implications of debt and wish to ensure all purchases are paid for in advance, they are ideal.

What Are Prepaid Credit Cards?

Prepaid credit cards enable more independence eliminating the risk of overspending the amount credited to the account. They also make great gifts for friends and family. If you´d rather live your life totally free of debt, a prepaid credit card lets you shop free in the knowledge that all that you purchase has already been paid for.

Lenders are increasingly offering prepaid Master Cards and prepaid Visa cards, which work just like regular credit cards. Merely by looking at or using it, both you and the store can tell it´s a prepaid credit card. Based on a very simple concept, prepaid credit cards require you to first open an account and pre-load the card with cash up-front, just like you would with a prepaid calling card. Then you?re ready to use your prepaid Master card or Visa card anywhere they are accepted.

Advantages Of Prepaid Credit Cards

Getting them is very easy as you can buy them online or at many local retail stores without credit check or income requirements. Just fill out a brief application, pay a minimal set-up fee and load cash on the card, which becomes your credit limit. Interest charges are nil which means that using your prepaid Master Card or Visa Card doesn´t involve any borrowing, as it´s all your own money and therefore no interest. With prepaid credit cards there is no financial trouble to get into or credit problems. You don?t borrow any money, so you don´t get into any debt.

Use them almost anywhere you like as your prepaid Master Card or Visa Card can be used wherever the regular cards are accepted.

Disadvantages Of Prepaid Credit Cards

With a set-up fee of typically $5 to $50 to open an account it can prove expensive. Subsequent fees are $5 or more every time your load more cash on the card. Today´s regular credit cards by comparison hardly charge any set-up or annual fees. The lack of interest can offset the charges slightly. You also need cash up front to load the card before making any purchases, which can well be seen as an advantage. Certain prepaid cards lack the facility for automatic recurring payments like monthly subscription to online services.

Conclusion

An excellent solution when one has a history of credit problems or problems getting a regular credit card for whatever reason, prepaid cards may sometimes be the only solution. Before going for one, do a comparison of different offers for the prepaid credit card that is most suited to your individual needs and situation.