Thoughts About Pre Paid Credit Cards

The title “pre paid credit cards” is actually somewhat of an oxymoron. A contradiction in terms. A credit card is actually an extension of credit without any security except your good credit rating. If you have to deposit money into an account it is not a credit card, it is a debit card. You can use pre paid credit cards for all of your purchases up to the amount you have on the card. These cards generally have the logo of either Visa or MasterCard and are accepted worldwide.

The problem is that many people, for one reason or another, cannot get a credit card. There are even people who cannot get a bank account. In today´s world carrying large amounts of cash is foolhardy and even questionable behavior to some police. Also there are a great many businesses, especially service businesses like hotels, motels, travel agencies, car rentals, and airlines will only accept credit cards as payment or require them for a deposit. If you are a person in this situation a great many resources are denied to you. This makes a prepaid credit card very valuable to anyone in this situation.

Most credit cards have a setup fee and a monthly fee and so do pre paid cards. Prepaid cards do not charge interest however, this is not credit, but they do charge a percentage of each purchase or a flat fee for each use. These fees vary from company to company so it is best to go online and do some comparison shopping before buying a card. It is also a great idea to go to the websites that review all of this card s and learn more about the pros and cons of each card. These cards can be a great benefit but you should still shop wisely to get the best deal and keep your money in your pocket.

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