|
|
|
|
Home / Finance / Credit
The Truth About Prepaid Credit Cards
By:Morgan Hamilton
Prepaid credit cards have been around for over ten years now, although they are just now coming into the spotlight. Prepaid credit cards are basically credit cards backed by major credit card companies that offer you the ability to deposit money onto the card and then use it for purchases. You are not allowed to spend anything more than you have deposited in most cases. It is a great way to teach students good financial responsibility. There are a lot of advantages to prepaid credit cards, and only a few disadvantages. However, before committing to any prepaid credit cards, you should be clear on the company’s rules and fees.
No Credit Checks
One great thing about prepaid credit cards is that there is usually no credit check required. This makes prepaid credit cards ideal for those with lousy credit scores or even those without any previous credit to build their credit. If you have bad credit, this is a nice way to slowly rebuild your credit score. Creditors will see the card on your report and see if you use it responsibly and often.
No APR
Many prepaid credit cards offer no APR on money deposited and your purchases. Some do charge high interest rates on your balances however, so beware. There is no reason you should pay a monthly interest rate on money you have deposited or on purchases. Therefore, you should certainly look for cards that offer no APR.
Fees
Just like the bank, some prepaid credit cards charge fees on your transactions. Some prepaid credit cards will charge you ATM fees or cash withdrawal fees. These are the most common fees with prepaid credit cards. Some cards however may try to charge you a monthly usage fee. Try to get a prepaid credit card that does not charge this monthly fee. They exist out there, so just search. You will save yourself a lot in the long run by avoiding a monthly fee on your prepaid credit cards.
Direct Deposit
Prepaid credit cards often have the ability to allow you to directly deposit your check onto your card. This eliminates the need to go to the bank each week. This is the perfect option for the cardholder that uses their prepaid credit card for everything. Take advantage of these convenient options, as they can save you time. The truth is, prepaid credit cards are responsible ways to spend money. They give you the option of using your money anywhere credit cards are taken without leaving you with a high monthly bill.
Prepaid credit cards can also offer reward programs and other incentives similar to regular cards. They are convenient and low risk. As with any credit card, make sure your prepaid credit cards have terms which with you agree. It is better to read everything before rather than later.
Article Source: http://www.dailynewarticles.com
Morgan Hamilton offers expert advice and great tips regarding all aspects concerning Credit Cards.
Get the information you are seeking now by visiting
Prepaid Credit Cards
More Articles from Credit Category:
Bank Safely And Securely
Basic Tips For Getting Out Of Debt
How To Make A Well-Balanced Investment Portfolio
Credit Card Late Fees - How to Avoid Them
Life Insurance - How Much Do I Need?
Why Use Low Interest Rate Credit Cards?
How To Use Your Credit Card To Really Save You Some Money
Accounting Made Easy with Small Business Credit Cards
A Second Chance: Credit Unions
The Citi Hilton HHonors Visa Signature Credit Card - Pros and Cons
Busting the Myths of Your Credit Score
Stopping The Scary Phone Calls
Guidelines to Choose the Right Airlines Credit Card
Balance Transfers Primer
The Elvis Prepaid MasterCard Card - A Card From The King!
|
|
