Do you know the advantages of using prepaid credit cards? What are prepaid credit cards? How do you apply for prepaid credit cards?
What are prepaid credit cards?
When you open an account with a bank for prepaid credit cards, you need to bank in the money. The prepaid credit cards will carry the balance of the sum of money you deposit.
There is no way you can get into credit card debt with prepaid credit cards. After all, you are using your money. Once the money is used up, the transactions cannot go through.
Who can get prepaid credit cards?
Everyone can get prepaidcredit cards. Even if you have bad credit score, that does not affect your chance of getting prepaid credit cards.
As long as you have the money to deposit into the account, you can get the prepaid credit cards.
The bankers do not care how much credit card debt you have. After all, you are using your own money in prepaid credit cards.
What are the advantages of prepaid credit cards?
There are many advantages of using prepaid credit cards.
1. Control your expense
You can control your monthly expenses. If you set aside $500 for monthly expenses, you cannot exceed that amount.
In fact, you can use prepaid credit cards to control the expenses of your family members.
You can top up the money for your kids in college, so that they have enough to spend. You prevent them from going into debt with this method.
2. Convenience of credit cards
You have all the conveniences of credit cards. You can book the hotel room, pay for the bills online, shop online and do whatever you want as if you are using regular
You can top up the amount before you go for an oversea trip. That will prevent you from overspending when you are overseas.
3. Avoid getting into debt
It is impossible to get into credit card debt. You do not have to worry about incurring the interest on unpaid amount.
You do not have to worry about bad credit score.
In fact, getting prepaid credit cards can help you reestablish your credit history. Even though many people use prepaid credit cards only when they are in bankruptcy. That does not mean that you cannot use it to get a clean credit history.
4. Benefits of credit cards
You need to shop around before you sign up for the prepaid credit cards.
You need to get it from the banker who does not charge transaction cost or have low transaction cost. You need to find out whether the banker has the reward program for the usage of the card.
You have to treat it as if you are searching for the best credit card offer.
Scheng1 is a passionate blogger from Singapore. Rich in every sense reveals my deep desire in enjoying life, and be rich in every possible ways.