What Are Prepaid Credit Cards
Prepaid credit cards are normally confused as the debit cards. This article would help you clear your doubts regarding the prepaid credit cards and its usage. Prepaid credit cards are credit cards which are purchased for a temporary purpose. In Prepaid credit cards, a particular amount is debited to the bank very much in the same way you would have done while opening a saving or checking account, and this amount can be used for any purchases. It is more safe way of online shopping, if you wish not reveal your credit card information to any websites. The card has a purchasing power which is restricted to the amount paid as a security to ensure the security of the card.
Prepaid credit cards are lately offered by most of the banks. These cards are also of a use for those who do not qualify for owning a postpaid credit card. For owning a prepaid credit card, you would not need much of procedures. Firstly, for owning a prepaid credit card, you should approach a bank. With simple documentation, the amount to be filled in the card is done by making a payment in the bank. Immediately, a prepaid credit card is generated and this card can be used for online purchases and other purposes too.
Prepaid Credit Cards are of Different Types, Some of Them are Mentioned Below: –
- Prepaid Credit Cards for Travel Purposes
It is not safe to carry raw cash on the journey, the chances of losing cash would be higher and is risky. The same amount of risk is implied when carrying a real credit card or a debit card. If you wish not to carry cash or your real cards, then the best option available for a safe journey owns prepaid credit cards. The required amount of travel currency can be credited into the card and can used anywhere during the travel.
- Prepaid Credit Cards For Gifting Purposes
These are an alternative that was lately developed for gifting purposes. These prepaid credit cards can be filled with the amount of your choice and can be gifted on any occasion. This card can be used throughout the globe to make purchases of their choice.
- Prepaid Credit Cards for Annuities
These are prepaid credit cards, which give the flexibility of gaining the annuities from the card itself. This avoids the long queues for receiving cheques, instead the amount is directly debited to the card. This money in turn can be used for purchases. There are also special discounts offered for some particular credit cards.
Thus, owning prepaid credit cards is very helpful , this helps in quick transaction without carrying a single penny with you all the times.