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Prepaid Credit Cards
Prepaid credit cards are also known as Reloadable Credit Cards.
What are Prepaid Credit Cards and How They Work?
Prepaid Cards are:
- Prepaid Card are not credit cards
- They are exactly what they are called
Who offers prepaid credit cards?
Many businesses and companies offers prepaid credit cards.
How to apply for a card?
- Visit a business or company that offers prepaid credit
- Fill out a short application
- Deposit some money on the card
- The amount of your deposit is the limit on your prepaid card
Are there any fees associated with these cards?
Yes. there are fees.
- You will pay a small monthly fee
- Fee will be deducted from the balance on the prepaid card.
- No others fees and charges will be charged to you
Advantages of using prepaid credit
1) Can be used like a credit card without going in debt
2) Can be used for identification
3) Can be used to rent a car
4) No credit check required
5) Secures your cash
6) Can pay some bills with them
7) Pays a low monthly fee to keep the card active
8) Guaranteed approval
9) Some can be reloaded at many different locations
10) Can use to buy online products and services
11) Don't have to pay any interest for charges you make
Disadvantages of Using a Prepaid Credit Card
1) Someone else holds your money for you and in return they give you a card to use in the place of your cash
2) Can't pay some bills with them
3) Must pay a monthly fee to keep the prepaid card active
4) Will pay a fee every time you load or put money on the card
5) Getting one doesn't help establish credit
If you are interest in establishing credit I recommend you consider getting a secured credit card. Click here to learn about secured credit cards.
Click next page to learn about obtaining and choosing the right credit card
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