Prepaid Credit Cards
Guaranteed Acceptance Credit Cards
Prepaid Credit Cards - Guaranteed Acceptance
The media seems to be full of programmes and articles looking at the financially savvy credit card customers who move between card suppliers to take advantage of the interest-free balance transfer period that are currently on offer. Why pay high interest rates to card company 'A' when card company 'B' will give you a fresh start with a brand new card and up to 6-12 months interest free on your transferred balance?
Credit Cards with 100% guaranteed acceptance - no credit searches
In the past, shopping on the internet or making a large purchase without having to pay with cash was not possible for everyone. In the past couple of years though, an alternative to the standard type of credit card has become available. It's called a Prepaid card and is much easier to obtain than an ordinary credit card - in many cases the card issuers can offer 100% guaranteed acceptance.
There are no credit searches involved with a prepaid card, no complicated or lengthy application processes, and with some prepaid cards you don't even need to be 18. Prepaid debit card uses
When you apply for the card you will need to provide identification, but as a rule you won't have to agree to a credit search because the card doesn't actually offer you any credit - it's really a prepaid debit card. As its name suggests, you need to pre-load the card with money before you use it. This can be done in a number of ways - by transfer from a bank account for example, or by paying in cash at a nominated outlet.
The prepaid card is accepted in most of the ways that a normal card is, but unlike a credit card because you pay before you make a purchase, you can't exceed your credit limit.
You can use a prepaid card to pay your bills, transfer money, top-up your phone, internet shopping and with the prepaid Visa or MasterCard you can also withdraw cash from an ATM.
This means when you go abroad you can use the ATMs, and some card providers even offer 0% foreign exchange fees. Make sure you check rates etc before you go and check which ATM's are free for you to use as otherwise you may be landed with hefty fees.
A prepaid card also provides extra security if you are buying over the internet as you can load it with just enough cash to cover your intended purchase so that even if your details are stolen, you have less to lose.
A good advantage to a prepaid credit card is that you can apply for an additional card for a member of your family, and many use it for their teenage children. It can be reassuring to know that they have quick access to money if they should need it.
What are the catches with a prepaid card?
Depending on which type of card you use, you may have to pay a sign up fee and/or a monthly fee, but there are cards around which are either free or have very low fees.
Additionally, some cards make a charge for cash withdrawals from ATMs, but if you read the 'small print' and make sure you understand all the costs involved before you make a decision, you'll find that a prepaid credit card can be a useful addition.
Top up cards have the convenience of a credit card without the debt worry.