What are PrePaid cards?

 
Pre paid credit cards are almost like debit cards, except for they may be used just about anywhere that accepts the brand of card. (For example Visa or Mastercard) The reason I say they are like a debit card, is that there is no ‘credit’ as such.
 
As the card holder, you simply load the funds onto the card as and when you need to, and spend as you will.
 

Pre paid Credit Cards - The Facts…

 
1. Pre paid Credit Cards , What Use Are They? Well, many people think that prepaid credit cards are less of a concern when taken abroad. – If the card is stolen, the thief can only take out what is loaded on the card, and so cannot run you into debt.
2. Some Pre paid cards can be taken out different currencies than your home currency… Making them great for use abroad
3. It is vitually impossible to get into bad debt with most of these cards! –Normally, you cannot go overdrawn. (But be sure to check with the provider though, NEVER assume anything where credit is concerned!!!)
4. The fact that there is no credit check needed when applying means that you can many of these cards, and not have to worry about excess credit checks ruining your credit rating!
5. Prepaid cards can be a great idea for online payments, because if a ‘hacker’ or ‘cracker’ gets access to your details, then they’ll not be able to cause you to be in large amounts of debt. (Again, check the details with each card provider)
6. Finally, another possible benefit of not having a credit check carried out on you is that anyone (over 18 usually) with decent ID can acquire a card, no matter how bad their credit score is.
 
Looking at the facts above, it is plain to see that although they can be a little more costly to use, prepaid credit cards do have their place.
 
 
 
 
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When considering applying for a credit card, many people prefer to seek out companies with instant decision credit cards on offer. What people are often unaware of is the fact that the instant decision deals are only really on offer to those with a great credit score.
 
Most if not all of the companies offering instant decision credit cards will have a caveat stating “Subject to Status”. Only offering the instant decision deals to certain high scoring applicants is normal, and is along the same vein as only giving the advertised rate to people with the highest credit scores.
 
Whilst both of these facts may seem like an unreasonable marketing ploy, designed to get people to apply for the deal, and then in actual fact offer a deal that seems much less appealing, credit providers would argue that a person with a lower credit score is a higher risk for them, and so they need more of an incentive to take that risk. Whether this policy is fair or not, it seems that it is here to stay.
 
The best thing to do is just be aware that the APR and other rates that companies advertise, and the speed at which they say you get a decision after applying for credit are not necessarily the ones that will apply in your personal case. Be sure that you are 100% happy with what is on offer before agreeing to let the credit provider carry out a check on your credit file, as too many checks in a short period of time can in itself lower your credit score. So be sure to shop around and compare many different card, before deciding which you wish to apply for.