Credit cards have been around for years and it has proven to be a reliable tool for paying bills, tuition fees of your children or purchasing items or groceries you need at home. However, there might come a time where convenience can also be a cause for worry.
For those who have the habit to overspend or finds it difficult to control spending, owning a credit card can pose a big problem. The best solution is to get a prepaid visa credit card instead.
Definition and Advantages of a Prepaid Visa Credit Card
Prepaid visa credit card is a Visa card you can use to make purchases everywhere Visa debit cards are accepted just like a traditional Visa card. It gives the cardholder a safer feeling because he/she does not need to bring cash especially when traveling to other countries.
The difference is that when you have a traditional Visa card, you can purchase items and pay them at a later time. On the contrary, you need to add funds first to your account before you can start using your prepaid visa card.
Below are other advantages of a prepaid visa card:
- You can avoid over-spending. You only get to spend what you have loaded on the card. Managing your finances is easier and you have full-control of your expenses.
- You can use it to withdraw cash from ATMs worldwide.
- You can easily make purchases everywhere as long as they are accepting Visa cards. It can be from stores, online or by phone.
- People who love to travel can use it to pay for booking fees, hotel reservations, etc.
- You can use it to pay bills and buy gas for your car.
- You can track your spending online.
How to Get a Prepaid Visa Credit Card
1. You can apply for prepaid visa card from your nearest bank or online. You will be charged a considerably low fee to open a prepaid account. Application is quick and easy since no credit check needs to be done.
2. Register your Visa card in your name by telephone or online and establish an online account with your Visa card issuer.
3. Ask the issuer how you can activate your new prepaid visa card. Usually it is done by registering online or by telephone.
4. You will need to create a Personal Identification Number (PIN) so you can use your card at ATMs worldwide.
5. You can now use your new prepaid visa credit card to purchase items or pay bills. Check your balance at an ATM, by phone or on the internet. Reload your card so you can use it anytime.
Note: Some car rental companies do not accept pre paid credit cards so it is important to ask first if they are accepting prepaid visa cards. It is also important to note that some prepaid cards do not report to the credit bureaus. If you want to use your prepaid card for building credit, make sure that credit reporting service is provided.
About the Author
Tara Tiemann is a credit analyst for Go-prepaid.com which has been a resource site for people who want to live debt free. If you are on a budget using prepaid debit cards,prepaid credit cards and prepaid cell phone service can save you big money!