Advantages and disadvantages of a prepaid credit card

To a person with bad credit, the prepaid credit card seems to be their lifeline in the financial world as it is one of the few credit cards they are entitled to. This is because to get a card credit prepaid, there is no need of them going through an employment inspection or credit check.

As it is easy to get a prepaid credit card, you will have to deposit some money in your account to use it as your credit limit for using the card. In other words, with the card credit prepaid, you get to spend as much as you deposit in the account. And once your funds run low, you can deposit more money and thus make more purchases using the card.

Parents prefer card credit prepaid for their teens

Besides those with bad credit rating, the card credit prepaid is a great card option for teens, kids and students who don’t have a credit history. To the parent, this is the best card they can give their kids who require a card as thy can keep an eye on the amount of money that is spent via the card.

However as most prepaid cards have age restrictions, a parent usually has to activate the card first so that an under-aged child can use the card. This is because you have to be a minimum of 18 years to get a prepaid card.

Card credit prepaid cards are easy to qualify for

Applying for a card credit prepaid is rather easy; all you have to do is to apply online from any reputed company offering the card. On filling the form, you can choose the payment method you prefer like money order, bank wire transfer and personal checks.

Prepaid credit cards are best used in gas stations, online stores and grocery stores for any purchases you may have. Basically, card credit prepaid is similar to regular cards; the only difference lies in the fact that they are easier to qualify for.

No bills to pay with card credit prepaid

Moreover, they can be used worldwide and do not charge you interest like the interest regular cards charge. The reason you are not charged an interest for using the card is because you cannot spend more than the limit set by the card and the amount of money you deposit for the card. So with no interest charges, there are no bills for you to pay every month.

And in case your prepaid card expires, with balance money in the account, you can always transfer the balance from one card to another. However if you choose to do this, do make sure you do this after you read the terms and conditions of the different card companies
This is because different companies have different terms and conditions to be followed. So with the card credit prepaid card offering you so many benefits, and financial freedom, a person with bad credit rating still has something to look for in life!

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