Saturday, 5 September 2009

Positive And Negatives Of Prepaid Cards

For this post i'll tell about the positive and negative while using the prepaid Credit cards.Many Provider giving the great offers when using their credit or prepaid cards services.But as a consumer we need to know a little bit about pro and cons when using prepaid card for purchasing.

The Good and Bad While Using Prepaid Cards.

. By using this prepaid card, they usually will not offer credit card convenience without the difficult approval process or risk bear the debt. This card functions similar gift card, you only need to make a cash deposit account (direct deposit is usually available) before you can use it to purchase anything.

Prepaid cards instead of credit card, you may not spend more than the balance of your store and you will not be charged any interest for your spending. Pre-paid account will be reported to credit bureaus as a credit card

Good:
• Easy to approve, no credit required
• The same fraud liability protections as a standard credit card
• Easy to use for online or phone purchases
• Access cash from ATM machines
• Less expensive than check cashing services
Bad:
• High fees while opening and maintaining the account
• Very limited, if any, reporting to the credit bureaus
• Does not help to improve your credit the same way a credit card or secured card would
• Much more expensive than opening a checking account and using an ATM card

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