Prepaid Credit Cards can be used to make purchases like any other credit cards. In a prepaid card you need to deposit an amount onto your card and use the money to make purchases or get cash.
(prHWY.com) January 20, 2012 - Moon Twp, PA -- In other words by using such cards you are not borrowing money from a bank or other financial institutions. Prepaid credit cards appear, feel and work like normal credit cards but is pre-funded "stored-value" cards.
Prepaid cards come with a lot of fees. Such cards have a collection of fees, some of which can seem well hidden and difficult to compare. Prepaid card issuers often charge a fee to load the card with cash and may charge a pre-transaction fee. In addition to a fee to close the account, such cards may also charge a monthly maintenance fee. And each time you incur a fee, it comes from your balances, giving you less money to spend. And if you try to overdraw the card, you may need to pay an overdraft fee as well.
Most of the major credit cards brands like Visa, MasterCard and American Express, offers prepaid cards. To manage a prepaid card is more like managing a checking or saving accounts than managing a credit card. The card holder need not worry about any interest, finance charges, or late payments. You have to limit your spending with the amount in your account only. There is no revolving balance and the credit limit doesn't renew, until more money is added into the card. With prepaid card you can figure out in advance how you'll spend it and can also keep control on your purchases.
Prepaid credit cards prove beneficial to those who can't get cards because of limited or bad credit. Using such cards says nothing about your borrowing or repaying habits and does not allow the card companies to report to the credit bureaus. A prepaid credit card user needn't worry about his credit report or credit score. Also a parent who needs a regular way to send money to a child at college without giving him a regular credit card to use may give him a prepaid card and reload it as needed. Prepaid cards in one way or the other help you or your teens learn financial responsibility and good money management skills.
If you are unable to pay credit debt then contact credit card debt consolidation companies.
Corporate Headquarters
National Asset Management
LLC, P.O. Box 840, Moon Twp, PA 15108
http://www.nationalmanagement.net/
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