Prepaid Credit Cards-Advantages And Disadvantages
These promises, however, are not easily kept when you finally have a credit card. Credit cards can give the illusion that no cash is being spent, until the credit card bill arrives at the end of the billing period, when maximum restraint on splurging will already have been too late. Credit card thieves, moreover, are finding more and more ways to bypass strict bank security measures, and can use a credit card in many a poor victim's name.
It is due to these that credit card companies are now stricter when receiving credit card applications. Poor credit on previous cards is now automatically taken as reasons for rejection of an application. This is difficult for people who represent companies, which need credit cards to make hotel reservations, rent cars, and book tickets for both national and international flights at the last minute. Credit cards are also required to make orders online, or through the phone.
Prepaid credit cards provide an alternative to all those people that needs a credit card. They work much like debit cards; that is, an account is set up by a monetary deposit, and this deposited money can be used up through the prepaid credit card issued. The greatest advantage of prepaid credit cards is that you are entitled to spend only as much as you have in your account - thus, you will not be in debt, and you will have no bills to pay.
One disadvantage of prepaid credit cards, however, is that most prepaid credit card companies require a set up fee to both open and maintain the prepaid credit card account. You will be required to pay taxes on your cash deposits, and you may be required to pay an annual membership fee, much in the same way as you would an ordinary credit card.
Another major disadvantage is that most online merchants do not accept prepaid credit cards as payment. This is because they have no guarantees that the account can completely cover payment for an online purchase. This can be difficult for prepaid credit card holders to pay for monthly subscriptions to Internet service providers, or to purchase items that are sold at zero percent interest, with a certain amount deducted from the credit card at fixed time periods.
If you are interested in purchasing and using a prepaid credit card, take note of these advantages and disadvantages. Although you have the convenience of not carrying cash, you may not be able to purchase as many items as you wish, or from as many merchants as you please. Although you may have to pay additional fees for your account, you can control your overall spending and keep yourself out of debt.
Related Tags: credit card offers, credit cards, prepaid credit cards, creditcard
For more information on prepaid credit cards try visiting http://www.bestcreditcardtips.info, a website provides tips and information on how the choose the best credit card and get the lowest interest rates.
Your Article Search Directory : Find in ArticlesRecent articles in this category:
- What's In Your Credit Report?
IdentificationYour name, address, social security number, birthdate and previous and current employm - Pros And Cons Of Low Purchase Rate Credit Cards
Low interest credit cards are outstanding until the time period runs out. Most of these offers promo - Bad Credit Loan Scams
There are several bad credit loan scams out there. These are usually aimed at those that don't have - Successful Credit Repair Methods
If you bad credit, you are not alone. Fact of the matter is there are tens of thousands in the count - Auto Loans Bad Credit: Bad Credit Is Not An Obstacle Now
Now a days, people want their own Cars. Though there are Public Transport Systems, they do not watch - Credit Card Services For Your Business
Co Branded Credit cards can be very beneficial for you if you have a business. These cards are onlin - Will The Actual Natural Motion Endure Large Food? -- Horizon Milk
The natural food business may be going through major work day in energy in the past 10 years. Becaus - Prices Of Dlp Lamp Alternative Parts - Dlp Bulbs
Since you will have to purchase a DLP> lamp each and every few years, it might be useful to know the - Dlp Bulbs -- Facts About Dlp Lamp Replacement
With regards to technical breakthroughs there aren't many things that are more popular than tvs and - Ways Which Anybody May Restore Their Very Own Credit Rating Easily - Credit Repair For Dummies
If you listen to a lot of the actual ads which are available regarding credit>, more than likely you
Most viewed articles in this category:
- Credit - Repair
To make the life more comfortable people purchase lots of things from clothing to cars and homes tha - Helpful Tips For Using Low Interest Rate Credit Cards
People with good credit ratings often receive offers for low interest rate credit cards. A credit ca - Benefits to Businesses Accepting Credit Cards
Many business owners report a sharp increase in profit when they begin accepting credit cards as a m - How To Remove A Bankruptcy From Your Credit Report
Credit report repair can be a long, tedious process and one of the hardest items to get removed is a - Putting Low Interest Rate Credit Cards To Work
If you have a solid credit rating, then you may receive offers for low interest rate credit cards. Y - Buying A Car With A Personal Contract Purchase Loan
If you are looking to buy a car but are unsure whether or not a new car is worthwhile, then you shou - Credit Repair - Tips And Tricks That Work
When you apply for credit, your lender will request a credit report from a credit reporting agency. - Bad Credit Debt Consolidation
No doubt there are numerous bad credit personal loans but hunting for a secured loan for bad credit - Before You Buy
Check out the market in the area you want to buy. Find out what price houses are going for and - Top 10 Keys To Creating A Good Credit Score
We know it can be unfair but credit is used for everything these days. Utility companies are even us
