Prepaid Credit Cards Advantages and Disadvantages
Prepaid Credit Cards Advantages and Disadvantages
More and more people are seeing the convenience of having a credit card, especially those people who often travel and afraid to bring cash with them. However, individuals with poor to bad credit plastic card ratings find it difficult to apply for one. Good thing, there are prepaid credit cards in the market today. It works and looks like a traditional credit card except that it is pre-loaded. Let us discuss the benefits and drawbacks of this type of “plastic money”.
Prepaid Credit Card Advantages
Easy Access. Since no credit assessment is done, anyone can obtain a re-loadable prepaid card without any hassle.
Budget Friendly. Have you got an issue with overspending? With prepaid cards, it becomes easier Business Card Printing to control a person’s spending since you can only charge purchases to your card as long as you have an available balance. Once your charges have reached the maximum, you must make a new deposit or reload your prepaid card before you can use it for new purchases.
Avoid Bad Debt. A prepaid card does not come with a credit line so the risk of incurring bad debt can be avoided. Unlike credit cards, prepaid cards do not come with interest rates or late penalty fees which often leads to debt build-up.
Convenience. People who loves to travel or who are constantly on trips for business purposes find re-loadable prepaid cards very useful and convenient to use and carry. A traveler can simply take a re-loadable card instead of bringing cash for safety. Parents with college kids at boarding schools can send allowance though prepaid cards.
Prepaid Credit Card Disadvantages
Although prepaid cards do not come with interest rate or late penalty fees, you will find that there are other costs that you should look out for. Get a prepaid card with reasonable fees. There are lots of credit card review websites that can help you decide Card Accessories
which one to choose so take time to shop and compare all your possible options. What are the fees that you need to know?
Upfront Fee. Although no credit check needed, most Issuers call for an upfront payment. These fees are often called “application fee” or “activation fee”.