Prepaid Credit Cards
A prepaid credit card is an alternative to a credit card. Although referred to as a prepaid credit card it is in fact a prepaid Master Card that allows you the flexibility of a credit card but without some of its limitations.
When you make an application for a credit card you have to undergo a credit search. The outcome of the credit search will determine your credit limit. You can use your credit card to purchase goods and services. Every month you will receive a credit card statement. If you are able to pay off your outstanding balance at the end of each month you will incur no interest charges. However, if you are not able to pay off the balance at the end of the month you will then pay interest on the balance carried forward.
When you make an application for a prepaid Master Card you load it up with money. Because you have already loaded up your card with money you do not have to undergo go a credit search. At the end of each month you don’t have to concern yourself about clearing your outstanding balance or worry about carrying an outstanding balance into the next month thereby paying interest on interest. In fact you won’t even receive a statement.
Unlike a credit card your prepaid Master Card will have guaranteed acceptance at all participating outlets throughout the world. Also, unlike a credit card you have control over your spending as you cannot go over your prepaid amount unless you top it up with more money.
Just as with a credit card, your prepaid Master Card means that you don’t need to carry large amounts of cash. In case of theft you have the same level of protection on your prepaid Master Card as with a credit card via your PIN.
So how do you go about getting a prepaid Master Card. Different prepaid Master Card issuers will have different criteria but you pay an application fee to obtain the prepaid Master Card and are levied a fee each time you use your card to purchase goods and services. You can top up your prepaid Master Card online and through your bank and if you don’t have a bank account by cash at Post Offices, shops and garages throughout the UK. Some prepaid Master Card issuers may charge a monthly or annual fee. You can also used the prepaid Master Card abroad although different criteria will apply.
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