In this high-tech era of computers and machines, people’s purchasing power is mostly basing on credit. Nowadays, credit cards are almost indispensable in almost any business transaction. For one, nobody can purchase anything online without a credit card. Though, people who have a poor credit history will have a hard time getting or renewing their credit cards. It is where a prepaid credit card becomes useful. 

Some lenders offer prepaid MasterCards and or prepaid Visa Cards. These cards are available to use as a regular credit card. It is even hard to distinguish which card is prepaid or not by just looking at it or even using it. 

Basically, this is how prepaid credit cards work. When an account is open, the card has to be “pre-loaded” with cash up-front. It is like paying for a prepaid calling card. 

Prepaid MasterCards or Visas are available for use anywhere as long as shops accept these cards. However, you must first understand the pros and cons of this credit-free card.

The prepaid credit card advantage: 
  1. It is easy to obtain Prepaid credit cards. It is available for purchase online or in local retail stores and does not require any credit check or proof of income. The only thing to do is fill out an application, pay a small fee for setting up the account, and load the card with cash. The number of funds on the card is the “credit limit.” 
  2. No interest charges. There is no interest charge when used a prepaid MasterCard or prepaid Visa, unlike the regular credit card. It is because the money used is the owner’s actual money; therefore, no need for interest.
  3.  Credit cards like prepaif are free from financial or credit problems. 
  4. Prepaid cards are available for use almost anywhere. Prepaid MasterCards and Visa cards are available for use almost anywhere in the world. 


Disadvantages of Prepaid Credit Cards: 

  1. Usually, a set-up fee of 5 to 50 dollars is necessary when an account is already open. Then another fee of $5 or more is to ask for payment every time more money is cash onto the card. 

Regular credit cards usually do not charge a set-up fee or annual fees. 

  1. Cash upfront is necessary before any purchase with the prepaid card. 

This is also an advantage since compulsive spending is avoidable.

  1. Some prepaid credit cards are not possible to use to pay regular payments, such as monthly electric consumption or online services. 


The Conclusion: 

If you’re looking for a credit-free card, a prepaid credit card is a definite help for people who have past credit problems. It is just a matter of choosing the right prepaid credit card that suits ones’ needs.