Introduction
Prepaid credit cards are essential and help to build a person’s credit. There are several online merchants that offer prepaid credit cards. It is not difficult to qualify for a prepaid credit card and almost everyone can apply. Prepaid cards are similar to debit cards; you can only spend the amount that you have deposited. With Prepaid credit cards you will need to make a deposit as well in order to take advantage of the prepaid credit card. People who have very bad credit and a low credit score. Prepaid cards can be given to loved ones as a gift card. You can safely shop online using prepaid credit cards, most online companies accept them. Western Union, Netspend, Greendot, Vision and Rushcard are 5 of the best companies that offer prepaid cards. Opening an account is easy but not free, most of the company charge $4.95 for the card, and then charge a small fee when loading money on the card. You will be able to withdraw money at any ATM machine, but the card company is going to charge a fee for every withdrawal made. You can never over spend with a prepaid card. Using a prepaid credit card will prevent you from falling into debt. Most parents allow their teens and college students to have prepaid cards.
History
Prepaid credit cards have advantages and disadvantages. The advantages includes no credit check, some offer cash back on purchases, an improve credit rating, you will always be in control of your spending and it's great for teens. The disadvantages are that most of the card companies charge fees for every transaction, fee to setup the card, monthly fee, fee for purchases and fee to make a deposit.
Features
Prepaid cards are different from regular credit cards; therefore you will not be protected by the consumer credit act. One can apply online for a prepaid credit card online at Netspend and Western Union's website and they will mail the card to your address. They will include a toll free number that you can call to activate the card, or you can activate it online. Ensure that you have your Social security Number ready and an ID. They will tell you the best place where you can load money unto your card. It's that simple. If by chance you should lose your credit card, then you can contact the company that issued your card and have them send a replacement card. The maximum that can be loaded on the card is $10,000. You can have as many prepaid credit cards as you would like. The important factor is that you are in control and can never withdraw more than you deposit. With Netspend you can apply for more than one prepaid card and they are always quick to send the cards, usually with 5-10 business days.
Tips and comments
It's very important to compare prepaid cards, find out which prepaid credit card company gives more benefits, and charge less for monthly transactions. You can check online for customers review on the credit card of your choice
