Free Prepaid Credit Card

Can You Benefit From Having A Free Prepaid Credit Card

A free, prepaid credit card is the card of choice for people who have a poor credit history. They will usually have a very difficult time getting a regular card or sometimes will not be allowed to renew an existing card.

These cards are also the perfect choice for people who want to be assured of keeping their spending within a certain budget.

In our high tech society today based on computers and machines, our purchasing power is based mostly on credit. Charge cards are almost a necessity in almost all business transactions. Virtually, nothing can be bought online without a credit card.

What is a Prepaid Card and How Does It Work

Many lenders offer prepaid MasterCards and/or Visa Cards, and they can be used in exactly the same way usual cards are used. It is almost impossible to distinguish whether a card is prepaid or not simply by looking at it.

These cards work like this:

1. An account is opened online or even in a local retail store. You are not required to show proof of income nor is a credit check done.

2. The card is pre-loaded at the place of purchase with up-front cash from you.

3. Prepaid MasterCards and Visa Cards can be used anywhere in the world where these cards are regularly accepted.

Advantages of Prepaid Cards

• It is easy to get a prepaid card either at a retail store or online.
• No credit check or income information is required. You only need to complete and application, pay a small fee for costs of setting up the account and load the card.
• The amount of cash you load in the card becomes your credit limit.
• There are no interest charges when you use a prepaid card, unlike those accumulated with regular cards. This is because any money used is actually your money, and therefore, no interest is applicable.
• There are no financial or credit problems with prepaid cards.
• Prepaid MasterCards and Visa Cards can be used almost anywhere in the world.
  

Disadvantages of Prepaid Cards

• There are some cost involved in using a prepaid card. The initial set-up fee can run from $5.00 to $50.00. Another fee, usually about $5.00 is required every time the card is re-loaded with money.
• Cash is needed in the card's account before any purchases can be made using your prepaid cash card. This can turn out to be a real blessing since compulsive spending and over spending will no longer be possible.
• Prepaid cards cannot be used to pay some regular payments such as utility bills.

To summarize, a free prepaid credit card is a great help for anyone who has no credit history or have had problems with credit in the past.  It is also for anyone wanting to be on a budget and be compelled to remain on it.

For more on free pre-paid credit cards and related info, see:

Prepaid Debit Card - Advantages and Disadvantages
Student Credit Card Offer - Differentiating From Regular Card
Credit Card Services - Take Advantage of Offers
Credit Repair - Best Ways to Better Credit
Apply Online For Credit Card - Easy and Convenient