A prepaid credit card is not really a credit card, it just holds the name "credit card". Like a true credit card, a prepaid credit card is a piece of plastic with a magnetic strip on the back, accepted by credit card processing services. But that is where the similarity ends.

Because no credit is offered by the prepaid credit card issuer, the credit card holder spends money which has been "stored" from a prior financial deposit by the credit card holder. However, it carries a credit card brand name (Visa, MasterCard, American Express or Discover), and can be used in similar ways.

After purchasing the prepaid credit card, the credit card holder loads the account with any amount of money, up to the predetermined credit card limit, and then uses the card to make purchases. Prepaid credit cards can be issued to minors (above 13) since there is no credit line involved. The main advantage over secured credit cards is that you are not required to come up with a large initial deposit to open an account. With prepaid credit cards you are not charged any interest, but you may be charged a purchasing fee and/or monthly usage fees.


Comments (0)
Write comment
Your Contact Details:
Comment:
[b] [i] [u] [url] [quote] [code] [img]   
:D:angry::angry-red::evil::idea::love::x:no-comments::ooo::pirate::?::(
:sleep::););)):0
Security
Please input the anti-spam code that you can read in the image.