Advantages And Disadvantages Of A Prepaid Card
What does prepaid mean?
Many of us have prepaid phone cards or SIM cards for our mobiles, but prepaid debit cards are quite a new idea. However, the concept is the same as other prepaid mediums, where you load money onto a card and then you can spend this money at retailers or withdraw the money at an ATM. You load money onto the card using cash, bank transfer or another card.
Are they credit or debit cards?
Prepaid cards are neither credit nor debit cards, but have features similar to both. These are VISA or MasterCard cards usually, and so have the wide usage and security features of a credit card. However, you are not borrowing money, simply using your own money to top up a card and spend on it. They are a financial product that falls in between debit and credit cards.
What are the advantages?
The major advantage of a prepaid card is that you can easily keep track of your spending and limit yourself to a certain level of spending each month. Also, you don't have to pay interest and don't have to go through credit checks to get one. All of the funds on the card are completely controlled by the amount of money you wish to put on it. This means there is no risk of borrowing too much and getting into debt.
Who should get a prepaid card?
Prepaid cards can be useful for anyone who wants to control their spending but still have the security and usage features of a credit card. Also, prepaid cards can be very useful for teenagers or children if they need a card. As a parent you can control their spending by only putting on a certain amount each week or month for them to spend, whilst still giving them the freedom and security to purchase items using plastic.
The costs of a prepaid card
Although prepaid cards have many advantages, they can cost you money through various charges and fees. Many prepaid cards carry an application charge as well as a monthly usage charge. If you are paying a monthly service charge, then you need to make sure that other services are given to you for this money, such as helplines or added security. Before getting a prepaid card, you should shop around to find the card that has the lowest fees. Although you are not paying interest, these fees can add up and if you don't use the card a lot could cost you more than you will end up spending. However, if you look around there are some good deals to be had. If you want to control your spending or your child's then getting a prepaid card might be the answer.
Related Tags: visa, credit cards, mastercard, cash back, advice, news, purchases, balance transfers, credit cards uk
Peter Kenny is a writer for creditcards-gb.co.uk Please visit us at Credit Cards UK and Compare Credit Cards Your Article Search Directory : Find in Articles
Recent articles in this category:
- The Secrets to Getting Low Down Payment Car Insurance
Upon purchase of a new car, there is almost always a requirement to buy an auto insurance policy as
- The Wisdom Behind Auto Insurance Comparison Quotes
No one in his right mind would not go for a good deal. In fact, everyone is out on their feet and ru
- The Benefits of Auto Insurance Comparisons Florida
Insurance can be expensive. This is something everyone knows about especially in the sunny state of
- Auto Insurance Florida: The No-Fault Policy
There are different kinds of car insurance offered by a wide range of providers today. Different sta
- Finding the Cheapest Auto Insurance Companies
Everyone is asking and searching for the cheapest auto insurance companies available today. Consider
- How do You Compare Private Health Insurance Cover in Australia?
Deciding what is the best and most affordable private health insurance cover can be easy if you take
- How Payment Protection Insurance Was Mis-Sold
For over six years the issue of Payment Protection Insurance (PPI) and how it was mis-sold to custom
- Finding Quotes For Auto Insurance Online
One of the many concerns when you are shopping for auto insurance is being able to get access to quo
- How You Can Find the Best Auto Insurance Online
When it comes to renewing your car insurance you are going to quickly discover that there are a numb
- Guidelines For Searching For Auto Insurance Online
The internet can be a great source of discounts and values related to auto insurance. However, many
Most viewed articles in this category:
- Trading Forex With Pivot Points
Forex Pivot Point Trading are used today by Forex Traders and are calculated on the previous days mo
- Where To Search For Free Grants
Where do you look for free grants? The search must be thorough or it could be an exercise in futilit
- The Connection Between High Blood Pressure and Salt
We are a society of Salt Addicts. It cannot be denied. When you look at the things we do and the pla
- Tips For Avoiding HYIP Scams
Before knowing about HYIP Scams, refer to the functioning of HYIP or "High Yield Investment Programs
- Getting Credit After Bankruptcy
Consumers do not have to live sans credit following a bankruptcy. By following certain steps consume
- Tips For Choosing A Credit Card
Are you looking for that perfect credit card? If so, you may be confused about what exactly to look
- Cheap Car Insurance For Teens Online
Many elements determine a car insurance policy. Car insurance companies look at the person's age, hi
- What Exactly Is Free Grant Money?
You can apply for free grant money from various government agencies. But where exactly does this mon
- Small Business Owners Marketing and Customer Service
Marketing can be time-consuming, but it doesn't have to be hugely expensive now, thanks to the Inter
- Apply Online For A Credit Card - How To Choose A Card?
The best type of credit card for you will be dependant on how you intend to use the credit card. Are