Over the past few years the credit card market has developed incredibly. It wasn’t that long ago that your options when applying for credit cards were very limited. Today the number of different credit card products is huge. Along with the standard cards, there are zero interest credit cards, credit cards for those with bad credit ratings, low doc cards, student cards, and pre paid credit cards amongst others. In this article we will examine the advances that have been made with pre paid credit cards, and how using them can be easy and convenient.
The Basics of Pre Paid Credit Cards
Pre-paid Credit Cards do not come with a line of credit as standard credit cards do. Instead customers need to “load” money or funds onto their card (think of it in terms of using a prepaid phone). The money balance of the pre paid credit cards can be loaded via an ATM machine or through various participating websites. Some credit providers even allow a check to be used to load funds onto their pre-paid credit cards.
More recently, people using these types of credit cards are utilizing technology such as their cell phones, their laptops, smart phones, and other such wireless devices to keep track of their pre paid credit card balance, and to receive alerts about payments and transactions relating to their cards.
Using these pre paid credit cards also gives us the convenience of more easily managing our credit spending. Running balances can be easily accessed and viewed via the internet, phone, or phone apps.
Other Uses of Pre Paid Credit Cards
- A growing number of employers are using pre paid credit cards as an alternative to electronic bank transfers, or handing out paychecks. This can save the employers certain administrative costs as well as providing a convenience to their employees.
- Retailers and even manufacturers are offering pre paid credit cards as incentives or bonuses for buying through their store or for purchasing their products.
- Pre paid credit cards are great for those who need the purchase flexibility of a credit card but don’t qualify for a typical line-of-credit credit card.
As with any credit card, there are certain risks involved in using a pre paid credit card. Credit card theft and fraud are on-going concerns throughout the credit card industry. A pre paid card can be reported as lost or stolen, and cancelled in the same way that any other type of credit card can.
However, with pre paid credit cards the risks can be managed, transactions can be easily monitored, and the cards can be easily cancelled if necessary.
One of the main attractions of pre paid credit cards are the convenience they offer, particularly for those who have had difficulties in applying for other credit card products.
