Benefits of Prepaid Credit Cards

The financial world has drastically changed and credit cards have become essential parts of our lives. These cards are used to make payments and purchased at most if not all locations. The servicer that use credit cards for transactions include online stores where card payments are a must. Other places include; booking hotel rooms, renting a car, booking airline tickets among many others. Many of them opt to use credit card as a security measure. They are able to identify the person they are dealing with and in case of reservation they are guaranteed of payment.

Those who don’t want to use credit cards, and people with bad credit history have the option of using prepaid credit cards. These cards are the best for individuals who have a policy in place where all their financial transactions are done in cash. A prepaid credit card is very different from a credit card but their functionality is very much the same. Prepaid credit cards withdraw from an account set up specifically for use with that card. A bank account is not mandatory if you want to have a prepaid credit card. All you have to do is deposit an agreed amount with your prepaid card issuer and you are good to go.

Benefits of Prepaid Cards

Prepaid credit card issuers are easy to find and unlike credit cards there are no interest rates to consider although cash back and other rewards and incentives are not on offer. When shopping for a prepaid credit card there are a few things you should look out for. Some of the most important include:

Fees and charges

Prepaid credit cards carry some charges with them. These charges vary from monthly fees, activation fees, cash withdrawals are also charged in others. However most of these charges might be waived if you have a recurring income or any other income deposited directly to your account.

Recharge Account through Manual Payments or Direct Payroll Deposits.
You should find out how deposits to you accounts should be made as well as the minimum amount of deposits set a side by the card issuer.

Help and support

Customer care is a very vital part of any business and you should find out how the customer support is before engaging in any dealings with the prepaid credit card issuer.

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angelina1607 profile image

angelina1607 5 years ago

its true, credit cards plays vital role nowadays in life, but some banks are taking very high interest rates.

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