Prepaid Credit Card

July 10, 2008

Prepaid Credit Card – A Solution For Bad Credit

Prepaid credit cards are the most excellent alternatives for bad credit people and for those who want to get better credit score. There will be not be any inspection for your employment and credit rating too if you opt for Prepaid one. But you are required to deposit some amount of money in your account for your credit limit. You can deposit more money when your card has a low balance and you want to use it to make more purchases.

This card is the best option for teens, students, and kids who have no credit history but need a card. They are also a good choice for adults who prefer to keep a close eye on how much they spend. These cards are easy to use at grocery stores, gas stations, and online stores. These cards are also advantageous for small businesses. Small business owners with bad credit can apply for prepaid credit cards.

These cards are quite similar to regular cards but it is easier to qualify for these than regular cards. They can be used worldwide and do not charge interest like being charged on regular cards.

Few Important Questions about Prepaid Credit Cards

1. What is a prepaid credit card?
It is a reloadable card issued by a bank in order to authorize payment for purchases. However, there is a spending limit, which is determined by the amount of money deposited into the account. Since you are not allowed to use it beyond the limit, there is no interest charged. It is just like pay-as-you-go; there are no bills to pay after you use the card.

2. How can I apply for a prepaid credit card?
It is very easy to apply for a prepaid card. You can apply online. Simply click on the sign up button, fill out the form, and you can pay by whichever payment method you prefer: personal checks, money order, or bank wire transfer.

3. How old do you have to be to apply for a prepaid credit card?
Many prepaid cards have age restrictions. As a result, some providers will ask parents to activate the card in order to get their permission, which will thus allow children under the age limit to use the card. In general you must be at least 18 years or older in order to get a prepaid card; if you are under 18, you need to have your parents’ sign up for the card account.

4. If your prepaid credit card expires and still there is a lot of money in your account, what will happen in this situation?
You can transfer your balance from one card to another. Terms and conditions may vary from one card company to another. It is better to talk to a customer care representative for your card to help you come up with a solution.

5. What is a virtual credit card?
It is a non-reloadable and prepaid card mostly for one time; otherwise, it works like a regular card. It is designed to protect your financial information when you shop online. Each time you make a purchase at an online store, a new number is generated. It protects you from sharing your personal card number and other personal information when you shop online.