If you are in the market for a pre paid credit card then you most certainly are not alone. Prepaid cards are quickly becoming one of the most popular forms of payment amongst consumers today. It’s actually rather easy to see why. Let’s take a look at the features and benefits of this relatively new phenomenon.
How They Work
First and foremost let’s take a look at how these cards work. A consumer deposits a sum of money into a bank account, usually a checking account, which is then linked up to the card. The card can then be used to make purchases of goods and services anywhere that credit cards are accepted.
The benefit is that instead of taking out a line of credit from a bank, the consumer is using their own funds and therefore are not charged interest. In addition, for the vast majority of prepaid offers available there are no annual fees.
These cards can be used anywhere credit card transactions are processed including online and phone orders for such things as catalog purchases and so forth. They can also be used at ATM machines to withdraw cash on demand. They are safer than carrying cash and more convenient than carrying a checkbook.
A pre paid credit card offers many of the same features and benefits as an unsecured card but of course every offer is different and must be examined individually. They all feature instant guaranteed approval and can be used immediately as long as there are sufficient funds deposited to cover purchases.
Where to Apply
It is very easy to apply for a prepaid credit card offer. All an individual needs to do is request one with their bank or financial institution and it will be sent out to them as soon as it is produced. Once it is received the cardholder simply needs to activate it and they are good to go.
Consumers and businesses can also go online and apply there. A comprehensive website will feature many different prepaid offers. That is very helpful for letting the consumer decide which offer best suits their financial needs.
Another benefit of using a prepaid card, also commonly referred to as a debit card or preloaded card is that there are no credit checks required. This allows consumers that have poor credit ratings to be able to make purchases wherever credit transactions are accepted and processed.
What They Look Like
Prepaid cards and debit cards look exactly like credit cards and are the exact same size. They have the logo of the issuer on them such as Visa or MasterCard. They come in all different colors depending upon the issuer and some of the leading brands are AccountNow, Millennium Advantage, Juniper and BuyRight.
Prepay cards are also ideal for teens because they teach them responsible spending habits while still protecting them from running afoul with the credit rating agencies by spending irresponsibly. Parents can directly control and monitor the activity on the card. They will also avoid going into debt. An excellent teen prepaid debit card is Current by Discover.