Prepaid Credit Cards - What Are They?
Prepaid Credit Cards look and feel just like credit cards
, but actually work quite differently. You can use them everywhere Maestro, MasterCard or Visa is accepted (depending on the type of brand that they are) but you can only spend up to the available balance on them.
You load funds onto your card and use that money to make purchases and get cash - you are not borrowing money from a bank or other financial institution. Read on if you are interested in finding out more about these new payment solutions
- Credit on Prepaid Credit Cards
Also known as a Prepaid Debit Card or just as a Prepaid Card, they are similar to a regular credit card, except that there is really no credit limit as such and that funds available on the card are actually the funds that you have loaded on to the card. So in effect, it is not actually a credit card at all.
Pre paid credit cards typically come with a whole set of fees attached typically relating to issuance, loading, usage and cash withdrawals. Depending on the plan you choose, you can get a pay as you go or a pay monthly pre paid card. These cards are especially useful for those with a bad or non existent credit history and in such cases, the benefits of prepay cards far outweigh any of these potential extra charges.
- Getting Prepaid Credit Cards
The important thing to remember is that a pre paid card does not give you access to credit - so you do not really need to undertake and pass any credit checks as such. This also means that even if you do not quality for credit or even have CCJ's, you are still more than likely to get approved for a pre paid card.
However, as with most financial services and products, you still need to provide details to verify your identity and your address (typically a passport, driving licence and a utility bill with your UK address should suffice). Most UK prepaid card issuers can verify your details online to provide you with instant approval and your prepaid credit card would come through in the post in 7-10 days after application.
- The Benefits of Prepaid Credit Cards
Well, the main benefits are that a pre paid credit card is available to all regardless of their financial status. There are no credit checks or bank accounts necessary in order to apply for a prepay credit card. Pre paid Credit Cards allow you to spend without the fear of debt or fraud at millions of retailers online or on the high street.
You can even use them to withdraw cash from ATM's. Prepay cards can be MasterCard, Maestro or Visa branded. Prepaid cards with the MasterCard brand can be used to make purchases in-store, online and over the phone at over 28.5 million locations worldwide and to make withdrawals at over 1 million ATM's worldwide
- Using Prepaid Credit Cards
With these cards, you cannot get into debt but also there is no interest payable on the card which makes pre paid credit cards an outstanding proposition for all. You can get prepaid cards for all kinds of things which include
* Travel
* Shopping
* Money Transfer
* Gaming
* Payroll
* Banking (if you do not have a bank account)
and much much more.
- Prepaid Credit Cards for Business
Pre paid cards should not only be viewed as a method for individuals with a bad credit history to get an electronic payment card as prepaid cards offer tremendous business opportunities. Businesses can use prepaid cards to
* Manage Employee Expenses
* Run a Payroll Scheme
* Offer Corporate Incentives
* Offer a Payout Card
* Provide Remittance and Moneyshare Capabilites and
* Run Virtual Offices and Cashless branches.
The business opportunities on pre paid cards are endless.
Whatever you do, there is room for a prepaid credit card in everyone's life!
by: Divya Sharma
Loans for Bad Credit – Finance Varied Projects without Past Worries Adverse Credit Bank Account- Bank Account With all Facilities Poor Credit Bank Account- All the Facilities as that of Normal Bank Account Available just for You How To Apply For and Get A Credit Card Unsecured Bad Credit Loans Do Not Require Any Collateral Instant Loans No Credit Checks - Quick Solutions to Your problems Non Status Bank Accounts- Accounts for those who have a Poor Credit History Eliminate Collections From A Credit Report Saving Amidst the Credit Crunch Loans for tenant with bad credit-Reasonable finance for tenants and bad creditors Personal loans no credit check – Fastest loans without credit Things To Check With A Good Credit Card Do You Have Bad Credit?