Prepaid Credit Cards growing in sales
With the credit crunch hitting everyone causing people to change their lifestyle, with banks charging for bank accounts and credit card providers reducing credit limits and tightened up on getting a card people are now looking for an alternative. Prepaid credit cards are now becoming a substantial player in the market place. It is not known exactly how many prepaid credit cards are sold every month but based on speaking to some of the top prepaid card providers it is estimated about 35,000 prepaid cards are sold every month.
So what are prepaid credit cards?
A prepaid credit card is like a debit or credit card but without any form of credit being issued so no credit check is done when you apply. You just top up your card when you want to use it and spend as normal where you can use at any retailer, online or over the phone. As some of the prepaid credit cards have chip and pin you are able to use at any ATM but there is a small charge for this.A prepaid card is the new alternative to a debit card or credit card. Since these cards have a buying limit loaded by the user’s money, you cannot make purchases outside the capacity. This eliminates the chance to run into debts
Are there any added benefits to a prepaid card?
Some prepaid cards now have the facility to help improve your credit where figures last month were release to show that
-New to credit customers can now improve their ratings by up to 40%,
-Previously have poor credit histories can increase their ratings by up to 15%,
-Already good credit history can increase their credit rating by up to 13%.
This works by paying a monthly card fee up-front as a 12-month loan, which is repaid in 12 equal monthly installments. The loan has no interest or administration charges applied and can be settled in full at any time. There are no prepayment penalties and the repayment history is reported to leading credit bureau when paid in full. Plus you there are no transaction charges when you use your card.
Find the best prepaid card for you
Before buying a prepaid credit card, you should compare the various cards that are sold in the market; each card has its own price plan and terms of conditions so you can pick the one that meets your personal circumstances. Compare Prepaid is the leading comparison site on prepaid credit cards where is shows all the leading prepaid card providers available and has carried out reviews of the various prepaid cards.
There are some popular prepaid cards like O2 Cash Manager Card, Virgin Pay As You Go andCashPlus, which are all everyday use cards. In addition there is the Moneycorp free currency card which is ideal for people going on holiday, the main benefit is you pre buy the currency of your choice and is loaded directly on to your card where you gain a better exchange rate making it cheaper than using credit or debit cards.