Should You Get A Prepaid Credit Card?

Prepaid Credit?

Credit cards are a sore subject for me. I just won’t use them anymore because I can’t trust myself to use them properly. I recommend others to just use cash.

But in this world, you need some kind of plastic to do business.

A prepaid credit card really isn’t a credit card, since no credit is offered by the card issuer. The card-holder spends money which has been “stored” in a deposit bearing account by the card-holder or someone else, such as a parent or employer.

However, it carries a credit card brand (Prepaid Visa, Prepaid MasterCard, American Express or Discover) and can be used in similar ways just as though it were a regular credit card.

After purchasing the card, the cardholder deposits the account with any amount of money, up to the predetermined card limit. He or she then uses the card to make purchases the same way as a typical credit card or a prepaid debit card.

The main advantage of prepaid over secured credit cards is that you are not required to come up with $500 or more to open an account. With prepaid credit card you are not charged any interest but you are often charged a purchasing fee plus monthly fees after an arbitrary time period. Many other fees also usually apply to a prepaid card.

Since there is no credit line involved, prepaid credit card are sometimes marketed to teenagers over the age of 13 years old for shopping online without having their parents complete the transaction.

So, the question is, “Should you get a prepaid credit card ?” It depends on what card you use.

Shop around. Find a card that suits your needs. Always check the fees you’ll be charged. And above all, know your limitations when dealing with any kind of credit card .

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About smoothjazzandmore

I'm a TV producer and an Internet radio broadcaster. I also write for my blogs (An Op-Ed Blog and a Football Blog) here at WordPress.
This entry was posted in prepaid credit card, prepaid debit, prepaid mastercard. Bookmark the permalink.

5 Responses to Should You Get A Prepaid Credit Card?

  1. rosy says:

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  2. jasonreiner says:

    Prepaid Debit Cards are the way to go. I've booked flights on them, used them to stay at hotels, bought dinner and even filled up the car at the pump. Most of these things I would have had to carry lots of cash for but now it's so much easier. Check out http://www.futuracards.com. They give you a choice of cards either Unlimited or Pay-As-You-Go depending on how you are going to use it.

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  4. I always preferred to the credit card, But one thing in it i have don't like this, that the security and safety problem. Plastic Card

  5. jhon says:

    those of us who pay our credit-card bills off in full each month might be … described to be in the media or on some of the personal finance.http://www.allcreditcards.info

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