Top Up Credit Cards

What are top up credit cards?

Top up credit cards, also known as prepaid cards are cards that you load with money in advance and then use as a credit card, but you cannot spend what is not already on the card. So, if you get a top up card and put $100 on it, that is your limit, you cannot spend $105, so you cannot borrow any money. They are usable wherever credit cards are accepted, so if you have a MasterCard top up credit card, then you can use it wherever the retailer is displaying that MasterCard is accepted, likewise for Visa.

Benefits of top up credit cards

When you apply for top up credit cards, there are no credit checks, so if you have bad credit it will not affect your acceptance. You usually have to show some sort of ID, and verify your address, you may have to give bank account details as a source of income and maybe passport or drivers license. Different providers require different proofs and offer different types of cards. The benefit of having a top up credit card is that it enables you to build up a positive credit history, showing that you can manage money. They are also useful for people travelling to other countries, as you can load them up with different currencies, so you may use it abroad.

Uses of top up credit cards

If you decide that this form of credit but not credit card is of benefit to you, then have a look at some comparison sites as not all top up credit cards offer the same deals. The main criteria you need to check are fees and costs of cards. Some companies offer free top up credit cards, with no monthly fee but may charge a transaction fee, others charge no transaction fee but a flat monthly rate. You have to pay for the convenience of these cards, but there is no interest charge as you are not borrowing. What you use the card for will determine what cards are available. You might want two cards, use one, and top up another for a relative abroad, which is cheaper than many money transfers. They can be used by under 18's, so get one for a child, enabling them to have a limited spend. You can also select the method of top up, either using cash, or top up by mobile or top up at cash points and online. Top up credit cards are convenient, and you do not have the worry about spending money that you do not have.


Source: Credit Cards For People With Bad Credit Rating

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