Use Prepaid Credit Card

Today a credit card is a very necessary financial tool. Many purchases require credit cards and so you will need some form of credit card to participate in the modern economy.
Online purchases are often only possible with a credit card and many travel providers require credit cards for incidentals. This can put you in a very difficult situation if you either don’t want to use a credit card for fear of identity theft or you have poor credit and so cannot obtain a credit card. This is where the prepaid credit card fits in. You can use prepaid credit cards to obtain a credit card for use online for security of identity or for use if you cannot obtain another credit card. This article will step you through obtaining a prepaid credit card, using a prepaid credit card, and the advantages and disadvantages of prepaid credit cards.

Use Prepaid Credit Card - The Basics

Many financial institutions offer prepaid credit cards. These cards provide the financial institution with little to no risk and the transaction fees they obtain from offering such credit cards make this a very worthwhile business for them. This is excellent from your perspective in that it means that these cards are highly available. When obtaining a prepaid credit card you will typically look for a card that offers the range of features and benefits you are interested in. You will fill out the forms that the financial institution requires from you and will deposit some money against the card. When you make a purchase it will be drawn down from these funds and so you will want to ensure you fund your account accordingly. To have additional spending power you will need to refund the card. Many of these cards can be funded online making them extremely simple to use.

Use Prepaid Credit Card - How To Use It

To use a prepaid credit card you simply need to present the card to a merchant upon purchase or enter the account number online for online purchases. These credit cards work in just about the same way as a regular credit card from a merchant’s perspective and they often won’t even know that it is a prepaid credit card. This gives you tremendous flexibility.

Use Prepaid Credit Card - Advantages and Disadvantages

If you use a prepaid credit card the advantage is that you do not need to go through an application process. In addition, your liability will be limited to the amount of money you have deposited against the card. The disadvantage of this type of card is that it is often more expensive than an unsecured card and the reward options are typically limited. Also, some providers who expect to make recurring charges will not accept prepaid cards.

A prepaid credit card offers a flexible tool for those looking to either limit liability or to obtain a card when no other credit is forthcoming. A prepaid credit card is simple to use and easy to recharge, making it an ideal choice for those who either can’t or don’t want to use traditional credit cards.



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