For many people, Christmas is the perfect time to go on a holiday trip, to visit relatives abroad, go on a cruise, or see beautiful sights from another country. Are you planning to on a holiday vacation this year? If yes, consider the advantages of using a prepaid credit card in place of a regular credit card:
Spend only what you have. A prepaid card does not allow you to charge purchases or bills to your credit. Unlike a regular credit card, prepaid debit card holders are not provided with a credit line. In fact, prepaid credit cards are also popularly called E-wallets or electronic wallets because it’s just like putting your cash on a plastic credit card.
While some people may view this limit as a hassle, it can actually work for your benefit especially if you plan to use the card abroad. Splurges and overspending can sometimes be unavoidable. When using a credit card, it’s easy to push up the limit and worry about repayment later. With a prepaid credit card, you can only spend the amount loaded to your card. Once the balance runs out, you must reload or make a new deposit to use the prepaid card on new transactions. Thus, the limit helps prepaid card holders to keep track of their spending.
Avoid expensive interest rate charges. You don’t have to worry about paying any interest rate when using a prepaid credit card. This is because transactions charged to a prepaid card are automatically paid off using the available funds loaded to the card.
In addition, using a credit card in another country may cost you more than you expect. For example, currency conversion fees can be steep. You could be charged anywhere from 1% to 3% on currency conversion rates for every transaction. Paying these extra costs aside from your credit card rate can truly be a burden.
Safer to bring than cash or credit card. It is much safer to travel with a prepaid credit card on hand. This way, you don’t need to bring a large bulk of cash or do you need to bring all your credit cards. Furthermore, prepaid credit cards that bear the VISA and MasterCard logos are accepted by many merchants and establishments worldwide.
Get a prepaid credit card quickly and easily. If you currently have a poor credit score or a problem with your credit history, applying for a regular credit card now can be a hassle. Credit cards with the lowest interest rates and the best deals are often reserved only for people with good credit. If you are credit challenged, your application may get declined.
On the contrary, acquiring a prepaid credit card or prepaid debit card is quick and easy. This is because approval is not based on credit history or credit score so anyone can easily obtain one regardless of personal credit. If you plan to go on a holiday trip this year, you can bring a prepaid debit card without going through a complicated application process.
About the Author
Tara Tiemann is the credit specialist for http://go-prepaid.com. Which is a resource site for people who want to live debt free! If you are on a budget, using a prepaid credit card and prepaid debit card can save you big money!