Reloadable Prepaid Credit Cards
Top 5 Reasons to Have One |
By Ram P |
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What is a prepaid credit card? You pay in advance to get credit
Nope! It's a debit card where you first put money on the card and
then can spend only as much as is left on the card. You can shop
online, book tickets, do your groceries and withdraw cash with a
prepaid credit card. It's really a debit card that works like a
credit card. People call them prepaid credit cards because they look
like a credit card, act like a credit card and have a visa or
mastercard logo on them. Reloadable prepaid credit cards allow you
to add money to your card every time you run low.
#1:
Safety of not having cash
Prepaid cards are safer than cash.
If it's stolen, you can get a replacement card. And, unless you help
the crooks by writing your ATM PIN on the card, no one can steal
your money from your card. Both Visa and MasterCard have a zero
liability policy, which helps you recover money when there's an
unauthorized charge. And since it's not tied to your bank account,
there's only so much a crook can get.
#2: Budgeting, no
more finance charges
If you can't control your shopping and
rack up fees on your credit card or keep getting hit on the head
with NSF fees, you may want to come this way. You can spend only
what you put on the card, nothing more.
#3: You can't get
a credit card anymore
It works like a credit card, but
without a credit check or checking account. Prepaid credit cards
have a Visa logo or MasterCard logo on them. They work just like
credit cards. You can shop online, get hotel rooms and gas with
them. Since they're prepaid, it doesn't matter what your credit is.
#4: Say good bye to check cashing fees
Most prepaid cards
allow you to have your pay or government benefits sent directly over
to your card. Walk across to an ATM and take out cash. Works much
better than standing in line at a check casher! And it doesn't
matter if you're in chexsystems or don't have a checking account.
#5: Financial lifeline for your kids
Get your children a
prepaid credit card. You'll be able to restrict how much they spend
and will know what they're spending money on. And if they're out of
town and in a bind, you can load money on the card and they'll be
able withdraw cash from an ATM immediately.
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