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4 Benefits of Having a Prepaid Credit Card

18 February 2014 No Comment

ccHave you been considering a prepaid credit card? There are several reasons why this type of card is a good choice. Traditional credit cards are very effective but prepaid ones have several benefits over the conventional ones. So many people find themselves in the debt trap from using credit cards. Sure, everyone knows you have to pay your bills on time but so often one forgets their purchases or other situations come up where one ends up paying more than they wanted. If you only end up paying a partial amount of what you owe, the interest will end up forcing you to pay countless more dollars than you ever hoped. This is how credit card companies make a lot of their money, because some don’t pay them off immediately. This is where the benefits of a prepaid credit card can help you budget and keep you away from ever having to pay interest on a credit card again. Prepaid credit cards have these benefits:

Financial Flexibility

If you do not easily qualify for a regular credit card, the prepaid card is an ideal solution. Prepaid cards offer you a wide range of flexibility. The main difference is that you do not have a credit limit. Instead, you put money on the card whenever you want to expand your purchasing power.

Control Over Amount

You have complete control over how much money you wish to put on your card. It is similar to having a debit card. You cannot spend any more than the monetary value you prepaid on the card, thus eliminating any possible interest charges. When it is time to reload your card you have several options.

Shopping Freedom

Prepaid cards are accepted at convenience stores, grocery stores, department stores and you can use it to make online purchases. The card fits easily into a wallet. You no longer have to carry large amounts of cash while out shopping. It is essentially the same as a credit card other than actually getting “credit”, just deductions from your balance.

Security Features

The prepaid card comes with several security features that make it safe to use. All transactions are protected. Your account is monitored for fraud so there is no need to constantly worry about thieves making unauthorized purchases. Another important security feature is that your personal information is protected by sophisticated encryption technology. Basically, your prepaid card has all of the security features of a standard credit card. Prepaid credit cards are becoming more and more popular due to their convenience and overall benefits. Visit www.kaiku.com to learn more about obtaining a prepaid credit card.

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