What is a prepaid credit card
A prepaid credit card is a card that is able to ‘store’ money. It features the Visa or MasterCard logo, but plays a completely different role from a traditional credit or debit card. The money placed in a prepaid credit card account is usually deposited by the cardholder, a family member or an employer. The card is not a credit card, as no credit is offered by the card issuer.
DeltaQuest offer a wealth of advice and guidance on offshore accounts and funds, and can recommend the best money card solutions for your personal needs. For more information, please Contact Us.
Prepaid credit card explained
A prepaid credit card is a card that has been branded, but cannot be classified as a credit card as it does not play the same role. Once the card has been purchased, the account can be loaded with the desired amount of money, and there is a maximum amount of money that can be deposited, as imposed by the card issuer.
Prepaid credit cards are easy to use and offer consumers the opportunity to easily access their funds. They are also advantageous in that they enable the cardholder to monitor and control their outgoing payments. As the card does not offer any overdraft facility, it presents an easy and convenient method for controlling spending.
In addition to the above, a prepaid card is particularly beneficial for those who have a poor credit history, or no credit history to obtain a credit card. A prepaid credit card is a good resource for those who wish to rebuild their credit. They are also advantageous as they do not charge any interest to the card holder.
There are numerous prepaid cards to choose from and the particular card you select will depend upon your personal and financial needs. Most accounts feature a maximum monthly fee, which can be as little as US$3.00. Others feature cash bonus opportunities and other benefits, such as free activation.
Print This Post
