Is A Prepaid Credit Card For You?
Credit is something which people often feel less than comfortable discussing. It can be hard to be approved for a credit card, especially these days. If you have yet to build a credit history or have had credit problems in the past, it can be especially hard to get approved. No matter why you are rejected, it can be embarrassing to have this happen. However, a prepaid credit card can allow you to begin building a credit history while being able to benefit from the convenience of a traditional credit card.
But how does a prepaid credit card actually work? It is essentially an account into which you can deposit money and access it by using the card to make purchases. You can use a prepaid credit card anywhere that credit cards are accepted. Unlike a traditional card, however, you can only make purchases after you have deposited money in your account. There is a spending limit just as with a traditional charge card, but with a prepaid card, this limit is the amount which you have put on your account.
A prepaid credit card offers all of the convenience of a regular charge card. You can use it in the same way at the same places.
A prepaid credit card is very helpful in keeping your spending under control. You can only spend as much as you have deposited in your account, so it is impossible to get yourself into credit card debt by overspending. A prepaid credit card is also a good way to begin learning about managing your financial life responsibly.
Additionally, a prepaid credit card will give you the peace of mind that no one is going to be able to get a hold of your credit card numbers. This way, if you're purchasing things over the phone or internet you can rest assured that no one will have any way to access your other accounts and money.
So how to you set up a prepaid credit card. Well you will incur a fee to set up your credit account. Typically it is quite small. Anywhere from $5-$10. Additionally, there are usually fees that accompany any deposit that you are making into your account. Though there are some slight fees for those who have been struggling with their credit or merely want to keep a tight handle on their spending it really might be a viable solution for you.
Ours is a credit driven economy ? you need a credit card to do just about anything. It's hard to do even function without one. However, if you have bad credit, are trying to build a credit history for yourself or just want to keep your spending to a limit, then you might find that a prepaid credit card is perfect for you.
But how does a prepaid credit card actually work? It is essentially an account into which you can deposit money and access it by using the card to make purchases. You can use a prepaid credit card anywhere that credit cards are accepted. Unlike a traditional card, however, you can only make purchases after you have deposited money in your account. There is a spending limit just as with a traditional charge card, but with a prepaid card, this limit is the amount which you have put on your account.
A prepaid credit card offers all of the convenience of a regular charge card. You can use it in the same way at the same places.
A prepaid credit card is very helpful in keeping your spending under control. You can only spend as much as you have deposited in your account, so it is impossible to get yourself into credit card debt by overspending. A prepaid credit card is also a good way to begin learning about managing your financial life responsibly.
Additionally, a prepaid credit card will give you the peace of mind that no one is going to be able to get a hold of your credit card numbers. This way, if you're purchasing things over the phone or internet you can rest assured that no one will have any way to access your other accounts and money.
So how to you set up a prepaid credit card. Well you will incur a fee to set up your credit account. Typically it is quite small. Anywhere from $5-$10. Additionally, there are usually fees that accompany any deposit that you are making into your account. Though there are some slight fees for those who have been struggling with their credit or merely want to keep a tight handle on their spending it really might be a viable solution for you.
Ours is a credit driven economy ? you need a credit card to do just about anything. It's hard to do even function without one. However, if you have bad credit, are trying to build a credit history for yourself or just want to keep your spending to a limit, then you might find that a prepaid credit card is perfect for you.
About the Author:
Steven J. Talrechi is an expert on credit reporting for 12 years. He authors various topics on said field, including application for a credit card, and different credit card offers.
posted by Credit Counseling at
7:53 AM
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