Benefits of Prepaid Credit and Debit Cards

Unless you've been hiding under a rock the past few years, you are bound to have heard about prepaid credit and debit cards. If you have never considered one before, you may be confused as to what their purpose is, or how they benefit the users. You may even be aware that credit cards can be very dangerous to people who do not use them properly and cause themselves to get into a serious amount of debt, which may make you wary of investing in such things. Have no fear, this article will prepare you and help you understand how amazing prepaid cards really are, and how they can benefit everyone who cares to use them.

Unlike a credit card in which you need to have a credit and payment history check done, a prepaid credit card does not require such things. Here's why: with a prepaid credit card, people can get a credit line that is collateralized by an equal sum of money paid directly to a credit card company or purchased at a local retailer who offers the products. Essentially, you can only make purchases that is equal to the amount of money you "load" the card with, therefore keeping you from going into debt or paying astronomical fees due to over spending and under paying.

This type of payment can be used anywhere typical credit cards are accepted. If you have a prepaid Visa card, then anywhere Visa is accepted, whether it's at your favorite restaurant, at the mall, to reserve a hotel room, or even make travel arrangements, your card will be accepted. It is much safer than carrying cash, and many companies even offer protection from fraud just as a major credit card company would offer their customers in the case that your card gets stolen or lost. Even with a lack of decent credit and a stable job, you will be accepted for this type of account since you will have to put down monetary payment to "load" your card so there is no worry of rejection. Many prepaid cards even allow you to set up direct deposit of your employment checks straight into your account so you won't have to keep reloading your card when funds are low.

The amount of convenience and security these cards offer is a great testament as to why so many people use them. There are numerous types of cards currently available and each one offers different features from the last. Reward points, cash back, and even bonuses for setting up direct deposit are all features you can see from a prepaid credit card making them a great selection for any type of payments you need to make.

Source by Christa M O'Conner

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