Most Popular
1. It’s a New Macro, the Gold Market Knows It, But Dead Men Walking Do Not (yet)- Gary_Tanashian
2.Stock Market Presidential Election Cycle Seasonal Trend Analysis - Nadeem_Walayat
3. Bitcoin S&P Pattern - Nadeem_Walayat
4.Nvidia Blow Off Top - Flying High like the Phoenix too Close to the Sun - Nadeem_Walayat
4.U.S. financial market’s “Weimar phase” impact to your fiat and digital assets - Raymond_Matison
5. How to Profit from the Global Warming ClImate Change Mega Death Trend - Part1 - Nadeem_Walayat
7.Bitcoin Gravy Train Trend Forecast 2024 - - Nadeem_Walayat
8.The Bond Trade and Interest Rates - Nadeem_Walayat
9.It’s Easy to Scream Stocks Bubble! - Stephen_McBride
10.Fed’s Next Intertest Rate Move might not align with popular consensus - Richard_Mills
Last 7 days
Stocks, Bitcoin and Crypto Markets Breaking Bad on Donald Trump Pump - 21st Nov 24
Gold Price To Re-Test $2,700 - 21st Nov 24
Stock Market Sentiment Speaks: This Is My Strong Warning To You - 21st Nov 24
Financial Crisis 2025 - This is Going to Shock People! - 21st Nov 24
Dubai Deluge - AI Tech Stocks Earnings Correction Opportunities - 18th Nov 24
Why President Trump Has NO Real Power - Deep State Military Industrial Complex - 8th Nov 24
Social Grant Increases and Serge Belamant Amid South Africa's New Political Landscape - 8th Nov 24
Is Forex Worth It? - 8th Nov 24
Nvidia Numero Uno in Count Down to President Donald Pump Election Victory - 5th Nov 24
Trump or Harris - Who Wins US Presidential Election 2024 Forecast Prediction - 5th Nov 24
Stock Market Brief in Count Down to US Election Result 2024 - 3rd Nov 24
Gold Stocks’ Winter Rally 2024 - 3rd Nov 24
Why Countdown to U.S. Recession is Underway - 3rd Nov 24
Stock Market Trend Forecast to Jan 2025 - 2nd Nov 24
President Donald PUMP Forecast to Win US Presidential Election 2024 - 1st Nov 24
At These Levels, Buying Silver Is Like Getting It At $5 In 2003 - 28th Oct 24
Nvidia Numero Uno Selling Shovels in the AI Gold Rush - 28th Oct 24
The Future of Online Casinos - 28th Oct 24
Panic in the Air As Stock Market Correction Delivers Deep Opps in AI Tech Stocks - 27th Oct 24
Stocks, Bitcoin, Crypto's Counting Down to President Donald Pump! - 27th Oct 24
UK Budget 2024 - What to do Before 30th Oct - Pensions and ISA's - 27th Oct 24
7 Days of Crypto Opportunities Starts NOW - 27th Oct 24
The Power Law in Venture Capital: How Visionary Investors Like Yuri Milner Have Shaped the Future - 27th Oct 24
This Points To Significantly Higher Silver Prices - 27th Oct 24

Market Oracle FREE Newsletter

How to Protect your Wealth by Investing in AI Tech Stocks

Pre Paid Credit Cards- Great Idea, or Financial Con?

Personal_Finance / Credit Cards & Scoring Jun 17, 2008 - 10:43 PM GMT

By: Mike_Gracia

Personal_Finance Pre paid credit cards are, in a way, like a debit card, in that now actual credit is involved. They differ from debit cards however, because they are accepted pretty much anywhere that accepts the credit card brand (for example, MasterCard)


With pre paid cards like these, the card holder actually pays funds into the card (Loads the card) –and then spends the balance as they would a normal credit card.

What are the good points about pre paid credit cards ?

  • It is usually not possible to get into debt using a prepaid credit card. This is great for those concerned with getting themselves into bad debt.
  • Use abroad – These cards are often available in foreign currencies, making them handy for use abroad. Also, the risk of card fraud is a concern when abroad – at least with a prepaid card, people can only take what is actually on the card, and not run you into bad debt.
  • No need for a credit check to get a pre paid card.
  • Handy for online payments, as it saves you having to expose your real credit card details online!
  • There is no need for a credit check when applying for these cards, this helps keep the number of searches on your credit file down.
  • A way for people that have a very poor credit history to have a credit card, that can be accepted at most places that accept normal credit cards.
  • Instant decision on most cards… most pre paid cards are instant decision credit cards .

Any Disadvantages of Pre Paid Credit Cards?

  • With normal credit cards, you can get incentives, reward points etc… you usually don't with prepaid credit cards .
  • Often pre paid cards cannot be used to hire cars
  • Some suppliers charge a monthly fee for having a pre paid card
  • Often the cost of withdrawing on the card can be high
  • There will only be a limited number of places that you can re-charge the card
  • With some cards it may not be possible to re-load the card abroad

In summary, these cards can be useful, but make sure you know all of the expenses related to the card, and compare different pre paid cards, as they are not all the same!

By Mike Gracia

http://www.creditchoices.co.uk

    © 2007-2008 Copyright Mike Gracia / CreditChoices.co.uk. - All Rights Reserved
    Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.

    Mike Gracia Archive

© 2005-2022 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Comments

Jed
18 Jun 08, 08:09
Prepaid Card disadvantages

Your article touched on the con's of prepaid cards and the one that should be highlighted is that of fees.

Many of these cards not only charge a monthly fee but charge a signup fee and then additional fees for things like loading it and then using it.

These charges can end up being significant and one should carefully weigh-up whether it's not better to just use the debit card issued by your bank.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in