Prepaid Credit Cards look like credit cards, but work differently. You can use them everywhere Maestro, Mastercard or Visa is accepted (depending on the type of prepaid credit cards that they are) but you can only spend up to the available balance on your card.
With prepaid cards, you load funds onto your card and use that money to make purchases and get cash – you are not borrowing money from a bank or other financial institution. Read on if you are interested in finding out what prepaid credit cards are all about.
Credit on Prepaid Credit Cards
Also known as a Prepaid Debit Card or just as a Prepaid Card, a prepaid credit card is similar to a regular credit card, except that there is really no credit limit as such and that funds available on the card are actually the funds that you have loaded on to the card. So essentially a prepaid credit card is not really a credit card at all.
Prepaid credit cards typically come with a whole set of fees attached typically relating to issuance, loading, usage and cash withdrawals. Depending on the plan you choose, you can get a pay monthly or pay as you go prepaid credit card. These cards are especially useful for those with bad credit or a non existent credit history and in such cases, the benefits of prepaid credit cards far outweigh any of these potential extra charges.
Getting Prepaid Credit Cards
The important thing to remember is that a prepaid card does not give you access to credit – so you do not really need to undertake and pass any credit checks as such. This also means that even if you have a non existent credit history, bad credit or even have CCJ’s, you are still more than likely to get approved for a prepaid credit card.
However, as with most financial services, you still need to provide details to verify your identity and your address (typically a passport, driving license and a utility bill with your UK address should suffice). Most UK based prepaid card issuers can verify your details online to provide you with instant approval and your prepaid credit card would come through in the post in 7-10 days.
The Benefits of Prepaid Credit Cards
Well, the main benefits are that prepaid credit cards are available to all regardless of their financial status. There are no credit checks or bank accounts necessary in order to apply for these prepay credit cards. Prepaid Credit Cards allow you to spend without the fear of debt or fraud at millions of retailers online or on the high street.
You can even use them to withdraw cash from ATM’s. Prepaid cards can be Mastercard, Maestro or Visa branded. Prepaid cards with the Mastercard brand can be used to make purchases in-store, online and over the phone at over 28.5 million locations worldwide and to make withdrawals at over 1 million ATM’s worldwide
Click here for more detailed information on the benefits of prepaid credit cards.
Using Prepaid Credit Cards
As there is no credit on Prepaid Credit Cards, you cannot get into debt but also there is no interest payable on the card which makes prepaid credit cards an outstanding proposition for all. You can get prepaid credit cards for all kinds of things which include
- Money Transfer
- Banking (if you do not have a bank account)
and much much more.
Find out more about Prepaid Cards
Visit Prepaid365 to find out more about prepaid cards and prepaid credit cards and review and compare prepaid cards.