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The Pros and Cons of a PrePaid Credit Card Title The

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					Title:
The Pros and Cons of a PrePaid Credit Card

Word Count:
419

Summary:
PrePaid credit cards can be purchased at most private owned shipping and
mailbox businesses, retail drug stores such as Walgreen’s, CVS, Rite Aid
and many other businesses.


Keywords:
pre-paid credit cards, prepaid credit cards


Article Body:
The invention of the Pre-Paid credit card has several advantages and
disadvantages. The advantage of having this type of card is that you can
have an instant credit card without worrying about the usual credit
check. This is good for someone with bad credit who can not get approved
for an unsecured credit card. Unlike a secured credit card, the person
doesn’t have to have a bank account or deposit money.

Pre-Paid credit cards can be purchased at most private owned shipping and
mailbox businesses, retail drug stores such as Walgreen’s, CVS, Rite Aid
and many other businesses. This type of card can also be purchased
online.

This is also recommended for the person who can not open a bank account
due to credit issues. Many jobs require that a person receive direct
deposit. Now, if a person can not approve for a bank account how can they
receive their pay? Companies like GreenDot offer a solution by offering
direct deposit for those who need it. This is perfect because there are
no additional cashing fees that a person would normally be charged if
they cashed their check at a check cashing store. The monthly fee is
less than $5 per month. A person can order pizza, airline tickets or
anything where credit cards are accepted.

Another advantage is that this helps a person to establish or re-
establish their credit. Some Pre-Paid credit card firms offer services
where the consumer can have their monthly account activity reported to
major credit bureaus. All the person has to do is maintain a certain
balance in their account.

The only draw back with a Pre-Paid credit cards that if you are in an
emergency situation and you need to rent a car. Not all car rentals
allow you to rent a car with a Pre-Paid Credit Card.

Another draw back is that with a regular credit card, most companies
offer many benefits such as frequent flyer mileage. With a Pre-Paid card,
there is none of the extras such as frequent flyer mileage or road side
assistance. Many companies offer credit card holders benefits if their
card is stolen. For example, some companies will immediately give their
customers extra funds if money has been stolen out of their account in
less than 24 hours. With a Pre-Paid credit card, that is not the case.
Before investing in a Pre-Paid credit card, make sure that you read the
companies terms and conditions, this will save you a lot of confusion in
the long run.

				
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posted:4/25/2010
language:English
pages:2