Why Choose a Prepaid Credit Card?
When you compare credit cards, you're able to see the most important features of each card and choose the one that works best for you. That's no different when deciding between a prepaid credit card and a regular credit card. Why would you choose a prepaid credit card over a typical card? Here are some of the things to consider when looking for a prepaid credit card.
- When you choose a prepaid card, the most common criteria you use to compare credit cards doesn't matter. Since you're not borrowing money, there is no APR to compare, for instance.
- You will usually be charged a ?loading fee? for adding money to the balance on your card. The loading fee is an excellent comparison point.
- You may also be charged an additional fee for withdrawing money with your prepaid credit card. Keep in mind that if you're using your prepaid card to get cash from a bank machine, you may be charged an additional fee by the bank that owns the ATM. Compare the fees charged for cash withdrawals, if they are allowed at all by the prepaid card.
- If you compare credit cards carefully, you'll find some that offer loyalty and reward programmes, including cash back programmes for prepaid cards. Generally, they take the form of a credit to your remaining balance.
Top Reasons to Choose a Prepaid Credit Card
- Convenience of plastic money for online and telephone purchases
- Tracking spending via statements if your card plan offers them
- Safer than a debit card, since the prepaid card can not be used to access your banking accounts
- Prepaid cards are a handy way to give teens an allowance since they can't go overlimit, and can learn to handle credit limits responsibly.
You can compare credit cards and prepaid credit cards online to find the best choices for your needs.