subject: Prepaid Cards Common Misconceptions [print this page] Prepaid cards, they are just like credit cards, right? Well, no, there are actually a number of differences between the two cards. CreditNowUSA.com provides you with all the information you need to know about the differences between a credit card and a prepaid card. The website also provides up to date information a number of prepaid cards on the market.
Prepaid Cards Establish Credit
When you purchase a prepaid card, you do not need to fill out an application or submit to a credit check. The card has no connection to your credit history or score, since it is not a loan. While a prepaid card can help you budget and offers you a way to purchase items online, it is not the same as a credit card. If you have poor credit, getting a prepaid card will not help improve your history or score.
You Must Pay Fees
Fees vary from card to card. Some prepaid cards charge a fee when you load money on the card, when you take out cash, or even every time you swipe the card. Other cards waive the fees if you load a certain amount of money onto the card each month or sign up for direct deposit. Its best to do research before you purchase the card so that you know exactly what you need to pay.
A Prepaid Card is Just Like a Debit Card
A debit card is connected to your bank account. If someone steals the card, they have access to all the money you have in the account. Your prepaid card is separate from any bank account. If it is stolen, the thief only has access to what is on the card. Unlike with a debit card, you cannot overdraw a prepaid card. Once youve spent the money on the card, that is it until you reload.
At CreditNowUSA.com, you can compare prepaid cards to find the one that suits your needs. You can also compare credit cards to prepaid ones so that you can see the differences.
For more information, go to Prepaid Cards at http://www.creditnowusa.com/Prepaid-Cards
