A Credit-free Card: What is a prepaid credit card?

In this high-tech era of computers and machines, the purchasing power of people is mostly based on . Nowadays, cards are almost indispensable in almost any business transaction. For one, nobody can purchase anything online without a card.

People who have a poor history though, will have a hard time getting or renewing their cards. This is where becomes useful.

There are lenders that offer MasterCards and/or Visa Cards. Both these cards can be used like a regular card. It is even hard to distinguish which card is or not, by simply looking at it or even using it.

This is basically how cards work. When an account is opened, the card should be “pre-loaded” with cash up-front. This is like paying for a pre-paid calling card.

MasterCards or Visas can be used anywhere as long as these cards are accepted.

The card advantage:

1. card can be easily obtained. It can be purchased online or in local retail stores. It does not require any check or proof of income.

The only thing to do is to fill out an application, pay a small fee for setting-up the account and load the card with cash. The amount of cash loaded will be the “ limit”

2. No interest charges.

When a MasterCard or Visa is used, there is no interest charge unlike the regular card. The reason for this is that the money used is the owner’s actual money therefore no interest is needed.

3. cards are free from financial or problems.

4. cards can be used almost anywhere. MasterCards and Visa cards are almost accepted anywhere in the world.

Disadvantages of Cards:

1. Usually a set-up fee of 5 to 50 dollars is needed when an account is opened. Then another fee of $5 or more is paid every time more money is loaded onto the card.

Regular cards usually do not charge a set-up fee or annual fees.

2. Cash up front is needed before any purchase could be made with the card.

This could be an advantage since compulsive spending can be avoided.

3. There are some cards that cannot be used to pay regular payments such as monthly electric consumption or online services.

The Conclusion:

The card is a definite help for people who have past problems. It is just a matter of choosing the right card that suits ones’ needs.

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