|
Pre-Paid Credit Cards
Even though prepaid credit cards
function and seem just like debit credit cards, there is a major
difference between both in the sense that while debit credit
cards draw funds from a bank’s checking account, prepaid credit
cards draws money that has already been
loaded on to the card .
Prepaid credit cards, also known as prepaid
debit cards, are first and foremost, not credit cards. Rather,
these are cards, which are already pre-loaded by the user. The
user of these cards can determine the credit limit of the card
by pre-loading the prepaid credit card with the amount of cash
that he/she is prepared to spend. They are however called credit
cards because of the fact that they are accepted everywhere that
credit cards are.
The issuer of these cards provides the user
the facility to carry around a bank account to which all
purchases can be charged without actually having a bank account.
Another major advantage of prepaid credit cards is that they
help avoid debt, due to the absence of both credit purchases as
well as interest charges which generally accumulate on credit
cards.
Thus, prepaid credit cards are a very good
option for people with bad credit, compulsive spenders or people
who mismanage their payments since there is no risk of running
up any debt while making saving and budgeting easier.
Prepaid credit cards took off in the 1990’s
when major credit card companies realised that there was a
significant portion of the US population which could not qualify
for a credit card. It was to capitalize on these consumers, who
could form a sizable business for these credit card companies
that secure credit cards were introduced. Later on, the same
gave way to prepaid credit cards where funds are loaded on to a
Master or Visa card through merchant locations or online banks.
The credit line for prepaid credit card is set at the amount
deposited and keeps coming down with the value of purchases.
Therefore, prepaid credit cards are just a means of converting
hard cash into electronic currency which can be accessed via
plastic cards.
Even though prepaid credit cards function
and seem just like debit credit cards, there is a major
difference between both in the sense that while debit credit
cards draw funds from a bank’s checking account, prepaid credit
cards draws money that has already been
loaded on to the card .Unlike debit credit cards, prepaid credit
cards also do not require the use of a PIN for commercial
transactions.
Some of the main
advantages of a prepaid credit card are:
- a prepaid
credit card is widely accepted worldwide, with MasterCard
and Visa merchant acceptance
- is safe
and convenient to carry
- the user
does not have to worry about debt or overdue credit card
payments
- can be
reloaded with any amount of money over the phone, at ATMs or
even online.
The only disadvantage is that the holder does not have any
credit to fall back on, but then, this is the reason why
anyone would want to get a
prepaid credit cards in the first place.
Credit Cards News:
Bing: credit cards site:msnbc.msn.com
Search results
Red Tape - credit-cards
The Federal Reserve placed a soft cap on credit card late fees last week, the latest salvo in an ongoing battle between Congress and corporations that squeeze ...
Economy Watch - Consumers tap savings, credit cards to boost spending
The daffodils are up, the job and housing markets are improving, businesses are more upbeat and consumers are getting back in a spending mood.
Credit cards ?with training wheels? - Business - US business ...
NEW YORK ? With a credit score of 789, Lisa Dalton gets offers for platinum cards these days. But in the mid-1990s, her credit was devastated by ...
College credit cards seen as risky - Business - Personal finance ...
Credit cards are marketed aggressively to college students, but some young people can't handle the monthly payments and get deeply into debt.
credit cards - Latest news, videos, and information- msnbc.com
Latest news, videos, images of credit cards ... News Summary: Credit card late payment rate down. LOWER DELINQUENCY RATE: Credit reporting agency TransUnion says ...
US credit cards may not always work overseas
US credit cards may not always work overseas 130 countries dump magnetic strips in favor of smart cards with microchips Below:
Red Tape - cards
Millions of Americans have been told their credit card terms are changing for the worse this year. The only way to ward off the changes -- such as higher interest ...
Amount of unpaid credit card bills is rising - Business - Stocks ...
That represented more than 4 percent of the total outstanding principal balances owed to the trusts on credit cards that were issued by banks such as Bank of ...
Suze Orman: Tips to pay off credit cards - books - TODAY.com
Suze Orman: Tips to pay off credit cards How to get out of the vicious debt cycle in these difficult financial times Below: x
Overhead Bin - 4 tips for using credit cards overseas
by Odysseas Papadimitriou, Investopedia Tourism is expensive. ... Recommended: Salvage plan for wrecked Costa Concordia unveiled in Rome; Recommended: FAA ...
Newsfeed display by CaRP
|
 Personal
Finance Info
Credit Cards
|
