Currently, people have the option to use prepaid credit cards as the alternative to the real credit card. They work in a similar way. The difference is that the prepaid credit card will not involve any credit. You will need to deposit some amount of money first to their bank account. After that, they can do any purchases using this prepaid credit card. Meanwhile, you can make purchases with the money the bank lends if you are using a real credit card. You do not need to give any deposit first, but you need to pay the interest to the creditors if you plan to carry your debt balance over the months. So, what is it that making a prepaid credit card interesting to have if it does not provide any credit at all?
If you like having online purchases, but you do not want reveal your credit card information, a prepaid credit card is the best option to have. We must be extra careful currently because there are many online credits frauds. By buying something from online stores with a prepaid credit card, you do not need to reveal your information to any unknown merchants. By doing so, these merchants cannot access your credit line as well. However, you need to check the merchants first before making any purchase because there are merchants, which do not receive the monthly payments through prepaid credit cards.
If you have a kid who is going away for college, you might want to provide your kid with this prepaid credit card. It can be a great mean to teach your kid of financial responsibility. Your kid is able to have various purchases over the given amount of money, while you are able to control their spending habits easily. It is because you know the total amount you have deposit and you can monitor how will your kid spends the money.
Restoring Your Credit with Prepaid Credit Cards
If you want to improve your credit history by having this prepaid credit card, you need to do some checking first. It is because not every pre paid Credit Card Company will make reports to credit agencies. Therefore, you need to make sure that you apply to the company that will submits their report to the agencies. Otherwise, your main purpose of having the prepaid credit card might not be fulfilled. However, you can have the credit reports from some issuing companies by paying some amount of additional fees.
Choosing Prepaid Credit Cards with Interesting Programs
You might find some well-known financial institutions that offer interesting programs for their prepaid credit cards, such as an income opportunity. In this program, the company will generally provide a referral program in which you will have commission whenever you have referrals for them. Moreover, you also have the opportunity to generate money from the rebate program. If you can generate income from these programs to even exceed the annual card fees, this prepaid credit card is the best option to consider.
These reasons might explain why the prepaid credit cards are gaining popularity these days. Despite of which reason will suit you the best, you will always need to shop around for the best deal price. Above all, before you deposit your money, you have to make sure that the financial institution you join in is a reputable and trustworthy one.Top