How Safe are Prepaid Credit Cards?
Personal and Corporate Finance
There has never been a time when a getting credit card has been easy, but these days of tightened banking regulations it is even harder. If you have ever had any problems with your credit and your score is not high enough you can just about forget it. You may be in the financial position that you cannot even obtain a bank account. In today´s world however if you do not have a card with the Visa or MasterCard logo you cannot even shop on the internet and renting a car or a nice hotel room is impossible.
One solution to this problem has been to get prepaid credit cards. Prepaid credit cards are something like gift cards except you can use them anywhere you see the Visa or MasterCard logo and you can load them with up to $50,000, depending on the card company. The prepaid account is used very similar to a regular bank account. You deposit the money into the account, or “load” the card and you can then use it like a regular debit card. This is nothing more or less than a debit account with no interest earnings or check writing abilities. There are generally no perks like airline miles and gift points. When you first get a pre paid credit card from any company you will have to pay a fee of up to $10, and anytime you load the card there is another fee.
If you have other options you should make these cards your last. The cost of the card can be prohibitive and your financial position is probably not strong. This is a way, lacking anything else, to at least give you access to a debit card that you can use to help get your bills paid. Check each company first however prior to sending anyone the money. Make sure that it is a reputable company.
Related posts:
- Bad or No Credit History? Try Unsecured Credit Cards For People With Bad Credit
- Need Credit Cards for People with No Credit?
- Which are the Best Credit Cards for Students