Prepaid Credit Cards
What Are Prepaid Credit Cards?
Prepaid is a term that refers to services or purchases that are
paid for in advance of actually acquiring them. Examples of
prepaid services include gift cards or gift certificates, mobile
phone credit or preloaded credit debit cards etc.,
The function of prepaid creditcards, (which are also commonly
referred to as a debit cards), is not dis-similar to that of a
regular credit card or a debit card. A key feature of these types
of prepaid cards is that you pre-load money onto the cards in
advance and use it at places where debit cards or prepaid
MasterCard or Visas are accepted.
A further differentiating feature of a debit card or a pre-paid
creditcard, is that it does not require the parent as a co-signee,
provided you are at least 18 years of age.
Benefits Of Prepaid Cards
For a variety of reasons, there are many people, including
college students, who do not have bank accounts. As a
consequence, credit card credit is not available to them. Even
where having a bank account is not an issue, poor credit rating
or credit history can be a hinderance.
This is where prepaid debit cards or pre-paid credit cards can
offer a solution. Prepaid debit cards are becoming increasingly
popular and are being used by many in place of credit cards.
Apart from the fact that these cards are a great financial tool
for both college students and other people who cannot get
regular credit card credit, prepaid debit cards offer a safer
alternative to carrying cash.
Further benefits offered by prepaid debit cards is the ability
to monitor your spending and to budget accordingly. They can
also be less costly in relation to fees, compared to the costs
of maintaining some other types of checking accounts.
How Prepaid Credit/Debit Cards
Prepaid cards are ideal for college students in particular.
These debit or students credit cards are in effect visa or or
MasterCard accounts. These are obtained by opening a deposit
account, into which you or a parent will need to deposit a sum
that will represent the amount you want to have access to. This
sum of money will form the basis of your spending. Quite simply,
it is your own money being used, as opposed to you using credit
card credit borrowing.
As you spend, it's a simple case of reloading your prepaid
student credit card as you use the funds. Hence, a prepaid
reloadable credit card is not strictly a credit card but
a debit card, although these cards are often referred to
Prepaid reloadable credit cards present no risk to credit card
providers, which is why this type of credit card account is
usually targeted at other groups of people who have no established
credit history, or poor credit rating. For instance,
there are cards for teens; for people who have a
history of defaulting on credit or people who are immigrants and
for low income families etc.,
Selecting The Best Prepaid
More and more prepaid cards are becoming available -
especially in the Uk. These cards are targeting wider
audiences and especially the (under 18's) - pre-paid credit cards
for teens, prepaid Master Card and prepaid Visa card offers.
Both prepaid visa and MasterCards come with Chip & PIN with high
A word of caution though, if you want to select the best prepaid
student credit card! Some prepaid student cards or other debit products
will vary in terms of fees and charges, so it's important that
you check carefully and read the small print relating to the
payment/fee terms and conditions on your credit card
You can use one of the online prepaid cost calculator to
work out the best pre-paid card product based on your spending
habits. These online calculators are useful tools that can
help you work out the card fees associated with different prepaid students
credit cards just by entering the amount you intend to spend
and to top-up each week.
The ideal pre-paid credit card works on the premise of giving
you greater flexibility and control over your spending habits;
one that enables you - the cardholder to load the card with
funds at easily accessible outlets. You will also want the
comfort of knowing that you will avoid any kind of credit card
credit debt because you will only be able to spend the amount
you have loaded onto the prepaid card.
Cashplus is an example of one of the best prepaid card - Uk
that can meet such need. Available from MasterCard, Cashplus is
designed both as a student credit card and a prepaid card for
those with poor credit rating. With this prepaid debit card
you can re-load it at any selected Cashplus outlets or at Post
Offices. As prepaid services go, Cashplus may represent on of the
best prepaid credit card - Uk offers.
Making a prepaid credit card application will not require you to
any credit checks on applying. You can buy prepaid credit card
online from major credit card providers, including visa prepaid
credit cards, prepaid master card. Do also look at other student
credit card providers such as Citibank, J P Morgan and Chase.
Just visit each credit card provider's website then compare
prepaid credit card offers being made. You migh find the
following credit card company list useful.
Once you've made your prepaid credit card application and you
buy prepaid credit card credits at the limit you want to
spend up to, it is simply case of re-loading your credit limit as
you go. You can do this by telephone, at ATMs, in person or
by topping up your prepaid credit card online.
Which Credit Card For Students Should You Choose?
The content on this site is purely for information purposes only
and is not intended to replace your seeking professional financial
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