Thứ Tư, 21 tháng 8, 2013

The Marvel Of A Prepaid Credit Card

The Marvel Of A Prepaid Credit Card

Most of the time, people think twice before applying for a credit card especially if they are still not sure if they can handle accumulating a certain amount of debt for a time. Although credit cards can pose different advantages for their users, they also have their own disadvantages. These disadvantages occur if the person who owns the credit card fails to pay off his debt regularly and also if he has accumulated a lot of debt over the long run. The possibilities with a credit card are indeed endless, but not too many realize that also limitless is the possibility of you not being able to handle your finances and your credit properly.

Rejection Due To Bad Credit Standing

At some instances, people also get rejected to acquire a credit card because of a bad credit history. It may be caused by previous debts coming from other banks or institutions. Also, perhaps it can be brought by existing credit cards that are yet to be paid off. Whichever may be the reason, applying for a credit card is indeed a difficult task especially if you have already made a bad history with your previous ones. However, there is one type of credit card which enables you to have a credit card without the risk of accumulating future debts.

Prepaid Credit Cards

This is in the form of a prepaid credit card. Basically, a prepaid credit card is a typical bank account which lets you to deposit money into it. After acquiring such an account, the bank then gives you a prepaid credit card which you can use just the same way as you would with a normal credit card. The difference is that with a prepaid credit card, you are spending your own money at your own will. If you decided to purchase a certain item on the market, you will use the credit card as payment and the amount that you have purchased shall be deducted from your current bank account.

Advantages Of Prepaid Credit Cards

Another marvel of the prepaid credit card is that since it is not paid after the purchase, it absolutely holds no interest charges for you. You do not have to concern yourself with monthly bills and additional fees since the transactions are made directly to your bank account. In essence, the prepaid credit card works just as much as a debit card that is linked to your savings account. Having a prepaid credit card can definitely help you in limiting your expenses which mean that you can be more practical with your decisions and purchases. It helps you predict just how much you can still spend over a given period of time. It will help you in the long run become a much thriftier and wiser person in terms of your finances.

Advantages Far Outweigh The Disadvantages Of Having Prepaid Credit Cards
Aside from these, not only is a prepaid credit card able to purchase items on the market but it can generally serve like a credit card in reserving for rental rooms, hotels and cars. And since your payments are done outright, you do not have to worry anymore about bills and interest rates. Indeed, having a prepaid credit card has more advantages than the risks that it may present in the long run.

2 nhận xét:

  1. There are also cons with having a prepaid credit card. Having such a card means that you have deposited a certain amount of money to your account so that you can spend it later on. But the problem will rise if you have no possible resources to deposit to your account, thus making your prepaid credit card temporarily halted. To prevent such a thing from happening, you have to make sure that you plan very carefully your finances so that a certain percentage can be allotted for your credit card.prepaid credit card.

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  2. A prepaid credit card account is opened by depositing, If you're frustrated because a credit card is necessary to get by in today's world, but can't apply for one because of bad credit, you might consider a prepaid credit card. You'll have most of the advantages of a credit card, and you won't have to worry about interest charges.prepaid credit card.

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