Pre paid credit cards v Credit Cards. Are prepaid cards becoming the new trend instead of carrying cash?
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?
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 latest statistic 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 extortionate 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 – SEARCH FOR THE RIGHT CARD FOR YOU
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:
Disadvantages of prepaid credit cards:
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.
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