Paying Bills with Prepaid Credit Cards: Recently, there has been a growing trend with banks offering customers lower and lower interest rates for new credit cards, and some even assure clients of no interest charges for up to a year! This has led to some consumers being suspicious about the motives of banks and to questions linked to exactly what the banks are looking to offer as well as some questioning whether there are hidden charges involved. These suspicions are deep rooted and would seem to be linked to consumer preconceptions about banks be out to do the “dirty” on them and with banks being concerned solely about raising commercial profits and bank bonuses.
Consumers have been quite familiar with the credit card, but they can’t be easily talked into it anymore because they also know the disadvantages a credit card brings – unlimited debt, the capability of people spending outside their means, and irresponsible shopping. What is the next best thing to a credit card that will not lead to problems such as these? Hence, the growing popularity of prepaid credit cards.
Prepaid credit cards are most likely the best solution to paying bills without sinking account holders deeper into debt. The thing is, they work almost like debit cards where the money used to pay the bills must be previously deposited. This prevents the unwanted debt brought by excessive shopping. The only difference is that the spending limit has been set to a lower level in order to control the account holder’s finances.
Paying Bills With Prepaid Cards
There are a lot of prepaid credit cards available in the UK. People can choose from those that are initially paid, but no monthly fees are required anymore or those that have small monthly fees but have additional discounts in stores where they will usually do their purchases. Prepaid Mastercard cards are available as pay monthly and pay as you prepaid cards with benefits such as online accounts, a limit balance of £3000 – £15,000, and online statements that helps consumers monitor where the cards are used. This can also be used as ATM to withdraw money anywhere in the UK. A number of people actually prefer pay monthly cards as compared to pay as you go cards as they like to know actually how much money they have spent or allocated towards card fees each month.
There are also Pay As You Go cards available and these cards charge fees ranging from £1.95-£29.99 paid once with no monthly charges. They also carry establishment discounts, rewards from purchases, customized cards and these can also be used as ATM cards.
There are a lot of options to choose from in the UK, depending on the budget and the benefits needed by the account holder. Any card chosen will still be a huge help because this can be used to monitor expenditures, unlike credit cards that give people the feeling of having unlimited buying capabilities. Prepaid credit cards not only allow people to spend within their means but to be a little wiser in where they put their money. A number of people actually now prefer paying their bills with prepaid cards.
Find out more about prepaid cards that are revolutionising the UK payments market at Prepaid365.