How To Use A Prepaid Credit Card – A prepaid credit card works more like a debit card because for every transaction you make with a prepaid credit card, your prepaid credit card balance reduces and instead of reducing cash from your bank account balance, the cash is reduced from the money you deposit on a prepaid credit card.
For example; if you deposit $300 into your prepaid credit card, and you purchase a house for _100, you will have about $200 left on your credit card. Once you’ve used up the entire cash on your prepaid credit card, you can reload the card with more money to enable you purchase more items.
Prepaid creditors cards are used to purchase any items at any retail store that accepts credit cards. You don’t need a bank account to be able to use a prepaid credit card.
All you need do is load money directly to your prepaid credit card and use the balance to buy items. When the balance on the prepaid credit card goes low, you can reload more money into the prepaid credit card.
Features Of A Prepaid Credit Card
- Prepaid credit cards have too many reloading options.
- No interest on prepaid credit card but fees are attached to using a prepaid credit card.
- Prepaid credit cards help to manage your money.
- Prepaid credit cards are protected by account-holding banks.
- Having a prepaid credit card doesn’t help build credit.
Prepaid credit cards are linked with many networks like visa, MasterCard, and American Express card, and at such the prepaid credit card can be used anywhere credit cards are accepted to buy things like groceries, hotel reservations, car rentals, and also pay your bills online.
Prepaid Credit Cards And ATM’s
The major advantage of a prepaid credit card is that it can be used at ATM just like a credit and debit card. You can use a prepaid credit card at any ATM stand which is operated by the bank that issued the card to you, you can also use the prepaid credit card at any ATM that displays any of the network’s brand logos at the back of your prepaid credit card.
Who Can Use A Prepaid Credit Card?
A prepaid credit card can be used by anyone who doesn’t have either debit or the normal credit card. Mainly prepaid credit card is meant for students. Parents can load some amount of money to the card for their kids to use in school while they are not around them.
This helps parents teach their kids money management skills. Students can use the money on the card to pay for books, field trips, foods, practical’s, and other little expenses.
Note; always remember to check your prepaid credit card balance before purchasing an item to avoid being hit with big fees for making a large purchase without having enough cash on your prepaid credit card.