Prepaid Credit Card and a Normal Credit Card
A prepaid card looks like a credit or debit card. It can be used in the same way as a credit card in shops, restaurants or online, around the world. The main difference is that there is no risk of getting into debt because you can only spend the amount of money that is pre-loaded on the card.
Many people are rejected by credit card companies because they have poor credit. You will not have that difficulty with a prepaid credit card.
The problem with today’s society is that a credit card is needed to book hotels, airline flights or shopping online. This means that people with bad credit can\’t do any of these things because they don’t qualify for a credit card. It is for this reason prepaid cards are becoming very popular.
In particular, a Prepaid Credit Card is a pay as you go credit card. These can be created by a stand-alone company, not one of the traditional banks. Using one can mean that you\’re not using a bank at all! They won’t be concerned about your credit rating.
It basically works like a normal credit card (or debit card), except that it\’s not associated with a bank account. You have to add credit at a reload center, which are located at retailers, check cashing locations and supermarkets (such as Tesco, Safeway, Wal Mart etc), then you use it as you would a normal credit card.
Unlike traditional credit cards, the Prepaid Credit Card does not extend credit to cardholders. Instead, accounts are prepaid for a specific amount, while still being backed by MasterCard/Visa for near universal acceptance. There is no line of credit and accounts are only good for the balance applied.
We will make no apology for stressing that your credit rating is not a determining factor when issuing the Prepaid Credit Cards. All applicants are accepted, regardless of their credit history subject to verification of their address etc. There is no credit check performed with any credit referencing company and the card is therefore available to all. This opens up an opportunity for those who are normally declined mainstream credit card facilities due to adverse credit, low credit score, or lack of credit history. Even young children can use these cards.
As generally used in the English language, “prepaid” and “credit card” are a contradiction in terms. “Prepaid” means you have paid for something before taking receipt of it and will not be receiving a bill requesting payment later. Whereas, “credit card” means that you will be placing the purchase on credit and the lender (issuing bank) will supply the funds to the merchant. Then later when you receive your billing statement from them, you will be required to pay in full or in installments. Thus the commonly used term “prepaid credit card” could be considered an oxymoron. So, it is more accurate calling these cards a Prepaid Visa or MasterCard.
In other words a prepaid card is like a cross between a store gift card and a bank debit card. It is similar to a store gift card in that a certain amount of money has been loaded on it. It is like a bank debit card because it is accepted any place that a major credit card is honored, even online! Unlike a debit card, however, a prepaid card is not attached to a specific bank account.
Why Many People Will Need a Prepaid Credit Card During This Recession
Credit cards are a part of daily life these days. For each of us to establish a good credit rating is very important for many reasons from getting finance to getting a job.
Prepaid credit cards are a way for someone who cannot get a traditional credit card to build credit. The classic case here is the person who has declared themselves bankrupt. Once anyone does that their credit rating is reduced to zero and people describe that as having a bad credit rating, or just bad credit.
This is where a prepaid credit card can be a life saver.
There are some pros and cons to prepaid credit cards, so shopping around and being informed is important when getting one. A prepaid credit card will help build credit without the risk of falling into debt and hurting your credit rating even further.
A prepaid credit card is basically like any other credit card. It is backed by one of the major credit card companies. Prepaid credit cards, though, are completely controlled by the user. The account for the card is opened with a deposit that is then the credit limit. Whenever the user desires more money can be added. Only the amount of money that is in the account can be spent. If the user tries to spend more than their limit the card will be denied.
Walmart and Walgreens provide prepaid credit cards but there are many others. You load the card with an amount of money. Then you re-load it every time you need to use it.
Prepaid credit cards are really becoming popular because they are convenient and allow you to better budget your money than a regular credit card.
Charges vary from card to card, but it’s always best to compare fees before deciding which prepaid card is best for you. You can also find links on the above site to purchase prepaid cards.
Pre-paid credit cards are credit cards in which the owner of the card deposits funds with the credit card issuer to be accessed via the card. This is in contrast to a traditional credit card in which the credit card issuer gives the user a card without receiving any money in advance.
The merchant uses their standard procedure for accepting credit cards of any type. This often involves swiping the card through a terminal. In this case, the terminal is connected to a network that allows the card to be approved or declined. In the case of a pre-paid card, the amount of the purchase is compared to the amount of funds remaining from the original deposit. If there are sufficient funds available, then the transaction is approved. The amount of the purchase is deducted from the funds that were originally deposited with the credit card issuer and the remaining funds become the card\’s new balance.
Any government agency can deposit unemployment benefits, child support payments, etc. directly into a prepaid card, as your employer can do. You might be able to put money in it by yourself. The money can be used right away and the amount you spend or withdraw is deducted from it immediately. Just like debit cards, prepaid cards have a personal identification number.
There\’s nothing simpler. You pay up front. When the card runs out, you refill it. Use it like a credit card, but no bill at the end of the month, only a statement showing what you\’ve spent. That\’s why it\’s prepaid.
All you do is to decide how much to put on your prepaid credit card – and deposit that amount on the card, as you would into a bank account.
Features Of A Pre-Paid Credit Card
A pre-paid credit card is just what it says, a credit card paid for in advance. Once the credit limit is reached, the credit card is just a piece of plastic. You have to again pay upfront to renew it. The credit limit is thus known, fixed and limited.
Pre-paid credit cards are sure guarantee against empty bank accounts and credit-induced poverty. Your pride remains intact as pre-paid credit cards look just like the usual credit cards. No one will know that your spending is restricted. They are boon to shopaholics and impulsive buyers who end up with a mountain of debt before you can say Jack Robinson. They are an excellent buy for parents whose teenagers want to be treated as adults. Teenagers can also independently use their pocket money, summer job earnings and cash gifts to buy one. Some, like the Visa Gift Card, make an ideal birthday or wedding present. After all, buying presents can be nerve-wracking if you do not know what the prospective recipient wants or will appreciate, and sometimes because you do know! Others like Visa’s Travel Money Card are like traveler’s cheques without the attendant’s hassles. Most such cards may also come with benefits like protection from card theft, identity theft or fraudulent purchase.
Some companies find it a good substitute for paychecks. Employees get pre-paid credit cards limited to their salaries and linked to a single bank account of the company. The employee does not need a separate salary account. Additionally, he can step out of the office and into a shop, restaurant or a mall. No frustration of standing in queues to encash that salary check.
Pre Paid Credit Cards: Controller Of The Expense, Facilitator Of Trade
The first international pre-paid credit cards came into operation around 1998 when Visa came out with the Visa Travel Money. This was the significant signpost, as it gave a totally new dimension to the way the international travel started being conducted from this point onwards. Pre-paid credit cards are considered to be the first step in the direction of initiation of full fledged credit cards. Pre-paid credit card is considered as the first step towards baptism for credit cards as the person to whom this is issued is given an opportunity to build the credit history. The prepaid credit cards com in much handy if you are contemplating about buying a house, or the car which you have been fancying for quite a long time to own, or to give it to your wife as the present.
The advantage of pre-paid credit cards lies in the fact that they do not have a due date for payment. For those who are in the habit of forgetting the due dates of payment and most of us are, the pre-paid credit cards are indeed a blessing in disguise. So get a pre-paid credit card, and forget about setting reminders on the mobile phone, or putting it down in the things to do, or bribe your child to make you remember the date for payment, or to hang a bait in front of your wife to remind you about the due date, pre-paid credit cards make you self-reliant.
Compared with the normal credit cards, the pre-paid credit cards are in an advantageous position. It lies in the fact that, it does not allow you to go over the board while shopping. It happens indeed most of the times, when you go out for shopping and you are black-mailed into buying things which you may not by otherwise, but pre-paid credit cards indeed come to the rescue in these kind of situations. While spending within the defined limits, pre-paid credit cards do not discriminate as far as earning the reward points on the spending is concerned. You can earn the same reward points, which a normal credit card earns while using the pre-paid credit cards, so it is a better option to go in for pre-paid credit cards, if one is in the habit of being a shopoholic.
In this age where distances are shrinking owing to frequent travel there used to be a perpetual headache of carrying cash in denomination of currencies of the country to which one was traveling. It however is a thing of the past after the advent of the pre-paid credit cards. There is no need to worry now, as now there plenty of pre-paid credit cards available which are designed to ensure that the travel is secure and hassle free. There also is no need to run after the money changers, once you have put the pre-paid credit card’s travel card in your wallet. Once you are having the pre-paid credit card, your shopping also becomes hassle free as there is now no need to pay any transaction charge as well. It takes care of all oscillations that the foreign exchange rate may experience.
Living the Good Life with Pre-Paid VISA Card
Now, we welcome you the newest and easiest way of making financial transactions wherever you may be – with the Pre-Paid VISA Card. Now, you can say good bye to the dangers of having to carry with you hard cash for purchasing products in stores or paying your bills. With Pre-Paid VISA Cards, all of these transactions are available.Pre-Paid VISA Cards, makes it possible for you to pay your bills online, and if you do not have Internet connection, you can make payments by phone using telephone banking. Say goodbye to late penalties and pay your bills on time.
Although there are other companies that offer Pre-Paid Cards, our Pre-Paid VISA Card is unique because of it’s added benefits. Our “Points 2 U” Reward program lets you earn points for every purchase you make with the card. You can then redeem your points for travel, gifts, and products online. Our Pre-Paid VISA Card also benefits your family. With our “Family Matters Health Advantage Program”, you can now get discounted prices off on health care, prescription medication, and much more. Lastly, if you travel frequently, you can now have around the clock roadside assistance.
Our Pre-Paid VISA Card lets you to make fast and secure international and domestic money transfers, both to other card holders and to Companion Cards. Every card to card money transfer is free of charge. If you or a family member needs access to cash, you can withdraw from one of the 33 million ATM machines world wide.
Enjoy both Spanish and English online banking and telephone banking. Customer service representatives are also available 24/7.
Enroll now in our Pre-Paid VISA Card atwww.filipinocard.com .No proof of ID is required, no minimum deposit to receive a card, no waiting in line at a bank or credit check. Enrollment takes 5 minutes and is free. Once you receive your card you will enjoy the financial flexibility and card holder benefits.
