COMPARE PREPAID - SEARCH FOR THE RIGHT CARD FOR YOU

Prepaid v Credit Cards - Difference with Prepaid Card or a Traditional Credit Card? Are High Street banks moving towards fee based Credit Cards? with credit card charges increasing on a steady basis and with issuers now tighting the belt on who can get one what is the alternative to the strangle hold credit cards issuers have put on the market?

Pre paid credit cards v Credit Cards Are prepaid cards becoming the new trend instead of carrying cash?

Credit Cards charges are getting more and more people into bad debt, since the introduction on chip and pin on the credit card, it is estimated that 11% more people now withdraw cash on their credit cards.

Where since 2005, cash withdrawal fees have soared unnoticed from an average 20.83% APR to 27.06% APR with 69 of around 300 credit cards on the market racking up their cash withdrawal fees often tucked away in lengthy small printed terms and conditions.

The lastest staisics show that in total it is estimated that there has been 125 rate and fee increases inside a two-month period and has hit the consumers pocket quite hard and is extorinate lending.

What with Christmas around the corner and incomes already stretched to the maximum what with mortgage increases people may perhaps turn to their credit card as additional cash to cover the festive period only be to stung by higher rates and fees and becoming further and further in bad debt. Some lenders have exposed stricter lending criteria to reduce the amount of available credit on offer to applicants, which is a step in the right direction but shouldn’t all charges be capped and regulated?

COMPARE PREPAID

With more and more people getting into bad debt and looking for an alternative due to poor credit ratings prepaid cards have become the solution for many people. Prepaid cards show all charges are clearly defined and are clearly stated throughout individual prepaid card websites. Prepaid cards offer a logical, flexible alternative to credit cards.

Although you do not have an actual credit facility, you can still use all the functions normally associated with a traditional credit card and get discounts when using your prepaid card.

Advantages of prepaid credit cards:

• A prepaid credit card is easy to get. It requires only for you to confirm your ID and pay the application fee payment. The cards are available online and at several retail stores. see Prepaid credit cards
  
• Your credit limit is completely under your control as long as you deposit the cash to meet it. You can have as high a limit as you wish.
  
• With the prepaid card, there are no interest charges or most have no annual fees.
  
• When you use your card, you aren't accumulating any more debt. In fact, by making your credit card payment on time
  
• When travelling aboard use a prepaid MasterCard Visa cards as they are accepted worldwide.

Disadvantages of prepaid credit cards:

• Prepaid credit cards can be expensive . A set-up fee of £5.00 to £20.00 is charged when you make your opening deposit, and an additional fee is charged every time you add more money to your account and withdraw funds. These fees, on top of the money you have to put up to get the card in the first place, so check fees and charges and find the best card for your situation.
  
• With a standard credit card, you wouldn't be charged a set-up fee o rin most cases an annual fee. Although, the interest you would be charged on your credit card payment would make up for this in the long run and equate to more..
  
• The money you put down in the beginning is often a big deterrent to people in need of a line of credit. However, if you tend to spend over your credit limit, this system of only purchasing what you can afford may be a good way to retrain your spending habits.
  
• Some service providers will not accept prepaid cards for automatic payments. Check with customer service departments before you make plans to pay with your new card.

Conclusion

A prepaid credit card can be an excellent solution if you have had past credit problems or have difficulty getting a regular card for some reason. But it's vital that you practice good financial habits along with owning the card.

Make your credit card payment on time and in full. Manage your money. Get prepay cards that is based on your lifestyle where you will eventually offset some of the mistakes you made in your financial past.