Research shows that in an estimated calculation, there could also be a minimum of fifty million Americans who aren’t able to qualify for credit card. These shoppers are typically young, typically members of the minority teams and unbanked. Most of them are students and minors. How can an individual like students and unemployed personalities qualify for a credit card if nobody can provide them any credit at all?
Credit card companies offer todays a sort of prepaid credit cards, designed for use by specific segments in the market. These prepaid credit cards are meant for that significant portion of the population that cannot meet the qualification and criteria for a credit card account for any valid reason.
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Advantages of Prepaid Credit Cards
For those who do not have enough credit history or do not have enough amount of money, prepaid credit cards are the best choice for them. The banks that issue prepaid credit cards are also prepared to extend normal credit when they have proven that you are able to show that you have become a worthy credit risk.
Prepaid Credit Card for Students
Prepaid Visa credit card for students offers a lot of convenience not only for the students but also for their parents. It is a reloadable prepaid credit cards that offer parents several options on how to reload. Parents can add money to reloadable prepaid credit cards by depositing money, it can be an automatic transfer of funds from their account or via in an online transfer. Using the prepaid Visa credit card is no different from giving the regular allowance to their child, only they do so by electronic means and there is no more cash to carry by hands.
The parent is thus able to control to some extent the spending behavior of their child. They can use the prepaid credit card anywhere that the credit card is accepted.
Prepaid Credit Cards as Gift Certificates
Some prepaid credit cards works like a gift certificates. For instance, you buy the prepaid credit card for a certain amount, and you or your recipient can purchase any items with the gift certificate. This particular version of prepaid credit cards is non-reloadable.
Although these gift certificate is on-reloadable, when it gets lost or is stolen this prepaid card is replaceable.
Prepaid Credit Cards for Travel
There is a prepaid credit card designed for travel. It is a reloadable prepaid credit cards that can be purchased in lieu of travelers through checks or cash. In a special way, it combines the best features of a credit card and a traveler’s check for it is a combination of convenience and security features. In case you lose your prepaid credit card while you are on a travel, you can easily obtain an emergency replacement for your prepaid credit card.
Prepaid credit cards for travel are accepted all over the world, and allow you to obtain currency from ATM machines. You can always arrange for a reload on your prepaid account by phone or online when you are still in travel.
Disadvantages of Prepaid Credit Cards
There are a couple of things regarding paid credit cards that will not be as convenient as the regular credit cards.
1. You load only such a lot cash onto it.
2. You may got to keep track of the balance on the paid credit card
3. Not all of the merchandiser terminals wherever you use the card could also be able to assist you verify it.
4. Reloading your prepaid credit card is also a bit inconvenient to some.
5. Loading your prepaid card using cash is a time consuming. You would need to visit the collaborating outlet where you got your reloadable prepaid credit cards.
Prepaid credit cards is a little bit expensive. It impose an application fee and its quantity varies with the issuer. It is also has a service fee that you simply need to pay monthly. Furthermore, you also need to pay money for transaction fees, charges you are account to pay when you transfer funds and check your balanced.
Prospects of Prepaid Credit Cards
Prepaid credit cards don’t give credit; it is your cash that you use to pay. After you Reload your prepaid account, you are asked to pay different charges. It is not for free of charge. You are paying for the convenience and security of carrying a card rather than large amounts of money on your pocket.
Issuers of paid credit cards understand that it is important to monitor the credit behavior of the cardholder. A paid credit card would be a supply of data that indicates to the credit bureaus and issue lenders regarding how you as the individual cardholder use the card to pay your bills like utilities and how you spend your money from your accounts.