Why You Should Get a Prepaid Credit Card - Top Three Reasons
While the reasons to have a prepaid credit card are many, here are the top three:
1. Convenience: Yes you can use good old cash to make your purchases at your favorite stores, but what happens if you go online? While technology is great, there is not currently a way to pay for something online using cash. When you get a prepaid credit card you open up a whole new world of buying opportunities online and can take advantage of the many deals you can find at such online market places as Amazon.com and the like.
2. Safety: If you lose cash or have it stolen, it is gone forever. If you misplace or lose a prepaid credit card or it gets stolen you get a new card and are protected from any fraudulent activity that occurs on your card. In a world where theft is on the rise, this is a comforting feeling to have and offers you both safety and an added layer of protection.
3. No Bank Account Needed: While almost anyone can open a bank account, not everyone can get a debit card with their bank account. Because you prepay money on a prepaid credit card that means that you don't have a bank account attached to it. While you can still open a bank account if you wish, with a prepaid credit card, it is not necessary.
While you may not have any credit to your name, you can still enjoy all the perks that come with a credit card without all the hassles of a credit check or employer check using prepaid credit cards. Again, you can try to make it through life without having a credit card, but at some point in time you will find yourself at an staling point and not able to do something because you have no credit card in your wallet or purse. Using a prepaid credit card means that you will always be prepared and protected from whatever life may throw your way.
Source: Bank Freedom, Prepaid Credit Card | Prepaid Card, Bankfreedom.com
Published by Jimmy Collins - Featured Contributor in Business & Finance
Full time freelance writer. I am a former stock broker and money manager who still loves all aspects of finance as well as sports and fitness. Currently I hold a 4th degree black belt in the Martial Art of T... View profile
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19 Comments
Post a CommentI got a prepaid debit card with no fees thinking I could pay my credit cards on line. Guess what? 99% of the companies that extend credit DO NOT..I REPEAT...DO NOT ACCEPT payment by prepaid debit cards. Little did I know cause the debit card companies advertise "pay your bills on line". Well that doesn't work. I don't want a checking account. So, I have to continue to buy money orders.
THE CHEAPEST WOMAN ALIVE SAYS: use a debit card instead. there's no charge and my bank offers one through VISA which grants the same protections as a charge card against fraud. You can also rent a car and a hotel room with a debit card. Your money, no interest. Sweet deal
Pre-paid sucks. You need self discipline with either card. I use a regular CC which costs nothing to own plus get 2% return on my purchases. I have learned since the 80's when I went bankrupt with too many CCs, to keep only One CC. I use it for almost every purchase during the month except paying rent which I would do if allowed; and most importantly, I pay off balance each month in Full.
Too bad I did not have this sense of responsibility years ago when I was making the bucks. Older folks like myself find it easier to self discipline because they must or live on a park bench. We are all spoiled in America; think long about your undisciplined ways and Change and you will be happier than you can imagine, not for the money but for taking charge of your life. If you need further incentive let me tell you we are going into a Great Depression soon so you had better get it together. God bless Americans.
Where and what is the best place to get a prepaid credit credit charge?
You CANNOT use a prepaid CC to rent a car. I keep reading this on here, and it's not true. Car companies will only allow credit cards and only allow debit cards if you have good credit. They DO NOT allow prepaid credit cards, at least the ones in Florida don't.
Ever ttried to rent a car without a charge card?
Over the years, I've used regular CC and prepaid CC. Now I've closed my bank accts and CC. I only have a prepaid CC. Yes, prepaid costs a little, $1 per transaction or $10 unlimited each month. The advantages: I don't worry about lingering debts (due to there were always times I spent too much and didn't paid fully); I know the balance because I am notified daily and upon each transaction;online purchases--not worry sellers would rob me blind because my balance= max lost ; I am in control.
Top 3 reasons NOT to use a pre-paid credit card:
1. Cost. Annual fees, application fees, monthly finance fees. The list can go on and on and on.
2. Not all secured cards are created equal. Again, the cost comes in to play here. But, that is extremely important to understand. So, IF you MUST, do so with lots of caution.
3. Does that card report to any of the top 3 credit bureaus? If they don't, then you aren't building your credit, and all you are doing is paying an annual fee, monthly fees, and/or super high interest for absolutely no reason at all. Find out which credit reporting agency they report to. If they don't, move on.
prepaid cards may be ok but everytime i tried to get gas , i had to go in and most stations were a hastle . Getting a card where you can put down 300 and get 441 credit as long as you keep your balance paid off and then some in order to slowly raise your credit line and this is also reported to the credit reporting bureaus to help establish your credit.
I've cut back on our grocery bill and our precriptions and I get 50% back from buying drinks,shakes,vitamins,and have cut my 3-6 month check-ups at the doctors office for high blood sugar to once a year,thats cut out 150 miles of driving,no doctor bill,no co-pay,less trips to the drug store and I make an income for doing all of this savings.Call me 1-888-296-5998 and make money as you're saving as well,I still have both cars,1 credit card and a debit card,a camper,a nice house.
This is very informative for those who buy everything they want to buy. You save lots of money and this is very good suggestion for other people. Thanks God, I never had a credit card in my life and whenever I want to buy is always using our prepaid card.