If you happen to thinking about acquiring a prepaid credit card yet are hesitant to do so, this article was written with you in mind. What will be the benefits of prepaid credit cards? prepaidgiftbalance
Why should you consider a prepaid debit card over a regular card?
No credit check needed. If you don’t have any credit history, it can be difficult to get approved to get a regular card. At the same time, those that have bad credit or low credit score may be declined whenever they fail to satisfy the issuer’s credit requirement. With prepaid debit cards, you don’t have to worry about rejection. Whether you need to establish credit standing or desire to improve bad credit, use a prepaid debit card to do just that.
Controlled spending. Because prepaid credit cards really do not provide lines of credit, it will be much easier to track and control spending. With a regularcard, it really is too simple to charge purchases to your account until debt builds up and repayment becomes difficult. By using a prepaid account, the chance of bad debt is greatly lessened.
No interest charges. Since purchases are not made in advance, there’s no need to worry about incurring interest charges. APR charges are ranging from 10% to 19% or more, with respect to the form of credit card you’re using. With prepaid debit cards, this extra expense is completely eliminated.
Establish or build credit. Issuers of prepaid debit cards today report credit activities to the three major credit agencies – Experian, Equifax, TransUnion so they can definitely be used for establishing credit or rebuilding bad credit.
Widely accepted. Prepaid cards are accepted at stores and establishments that accept credit payment. If you prepaid card bears the VISA or MasterCard logo, you can be assured that your payment will be accepted without question. Indeed, you may use your prepaid credit card to purchase online or make reservations on the internet.
Safer mode of payment. Shopping over the internet can be risky if you use an ordinary credit card since it is attached to your bank account. On the opposite hand, with a prepaid credit card is a lot safer since you will not need to reveal any banking information.
Ideal for travelers. If you’re a frequent traveler, carrying money on your vacation can be risky. By getting a prepaid debit card, you don’t have to bring a large amount of cash. In case the card gets lost or stolen, it is easy to phone your issuer to have account blocked against unauthorized transactions.