Prepaid Credit Cards
The Prepaid Credit Card is also used just like a regular card. The Prepaid Credit Card has a low credit limit compared to the regular one. The credit limit for the regular credit card is based on the security deposit that the cardholder had provided. The prepaid debit card is different from the prepaid credit card just as in the case of the regular debit card from the regular credit card. The credit card is used in making purchases by means of credit while debit card is use in deducting money from a deposited amount.
A Prepaid Credit Card can be opened by depositing money to it, just like using a regular checking and savings account. After the money had been deposited, the holder is issued with a physical credit card, that they can use just like the regular credit card. Purchases on the Prepaid Credit Card can be controlled, that is why it is a good idea to have it, especially for those people who love spending. The purchasing power of the Prepaid Credit Card is limited only to what has been deposited on it for it to be used. Since a security deposit has been made prior to the use of the card, other bills and unnecessary interest is no longer a concern. Prepaid Credit and prepaid debit are both linked to the holders’ saving or checking accounts. Prepaid credit cards usually come with an additional fee, in order to set it up for it use. Also additional charges apply if more money is being deposited to the account. Prepaid Credit Cards can be used to pay car rentals or reservations, but not as a payment for internet or other utility bills, because of the danger that it might run out of money when the scheduled date of payment arrived.