Credit Cards are a powerful tool for your finances. When you use them correctly, they help build your credit, make purchases easier and help you track your money easily online. When you make a few mistakes with them, you can blow up your cash-to-debt ratio, incur fees and sink your credit score.
Learning to use credit cards can be a tough thing, but pre-paid cards are a great solution that can easily save you $100 with a 10 minute purchase.
The $100 is going to come from the interest you could have paid on a conventional credit card.
Advantages of Pre Paid Cards
By saving some cash and loading it onto a pre-paid card, you literally can’t pay any high interest rates from missing a payment – because the payment has already been made.
We know that standard credit cards have interest rates in the neighborhood of 19-25% — which is a lot of money. Remove the risk and exercise some smart spending by prepaying the card and using it as normal.
Who Can Get a Pre Paid Credit Card?
Anyone with the cash! That’s right – with prepaid cards, there is no risk for Visa, MasterCard or other providers, so if you can cover the amount that you want to load onto the card…. Well, that’s the entire ‘application process’.
Who Should Get a Pre Paid Credit Card?
If you’ve had trouble with credit card debt and don’t want to go down that road, definitely give it a try. Additionally, if you’ve never had a credit card before, this is a great option.
Basically, anyone that wants a little help and assurance they will use their credit card responsibly should try the pre-funded option as they get to know their credit habits.