Prepaid credit cards are by no means something new. They have been around for a decade or so, but have begun to gain popularity only recently. However, their increasing popularity among consumers has resulted in a great variety of products and services on the prepaid credit card market. Therefore, finding the right provider for your specific prepaid card needs can be quite a challenging task. This article will look into the advantages and disadvantages of prepaid credit cards and how to find and choose a product that suits your needs.
The first question most consumers ask is what exactly is a prepaid credit card – well, a prepaid card is like a credit card that you can deposit money onto and then use for a wide range of purchases and expenses. In most cases, you cannot spend more money than you have deposited. As you can imagine, this is a great way of staying within your budget limits and not getting into debt and also represents a very effective way of teaching your children financial responsibility. There are, in fact, a lot more advantages of prepaid credit cards that include safety, security and kudos value amongst other things. A prepaid MasterCard, for instance, is not just a means of paying for your purchases, but also an excellent way to manage your finances. A prepaid MasterCard has all the advantages of using cash and none of its drawbacks and can be used at over 30 million retailers worldwide that accept MasterCard. Prepaid cards are an excellent credit card alternative.
There are usually no credit checks involved in applying for pre paid cards, which makes this option very appealing for those with a poor credit history or those without a bank account. Furthermore, with some prepaid cards, you even have the opportunity to rebuild your credit score whilst enjoying all the benefits of a plastic card, and the unbanked get to seize all the opportunities of shopping online and getting the best deals.
Another major advantage would be that most prepaid card companies do not charge an annual percentage rate on the money you deposit or spend. In other words, there is no interest rate or there are a number of cards where there are no fees to pay on your transactions. However, keep in mind that this is not a general rule, and that you cannot enjoy these benefits with all types of pre paid cards.
If you run a business and have not yet launched a prepaid card programme, you should know that there are many advantages to using prepaid cards within your business. These include the ability to pay unbanked or temporary staff, to manage business expenses successfully while on the move or at events, to reward and gift customers, to introduce incentive and loyalty schemes, to pay out insurance claims, and many more.
For the individual consumer, prepaid credit cards are an excellent option when you want to share money with family and friends, make purchases when travelling abroad, shop online in a safe and secure environment, take control of your spending, or provide your loved ones with a gift of choice. Prepaid cards enable you to do all this without ever having to share your personal details online, paying high cheque encashing fees or carrying unsafe cash in your wallet.
If you are interested in prepaid cards UK, there is definitely greater choice today with over 200 different prepaid cards available in the UK market for you to choose from and under these circumstances, choosing the right one for you, as a consumer, and for your particular needs and requirements can be a rather daunting task. Hence, it is not surprising that comparison sites providing reviews and comparisons of these prepaid cards remain the best place to find the best prepaid MasterCard or prepaid Visa card in an efficient and cost effective manner.
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