Specify Your Own Credit Limit
In traditional credit cards, the bank or credit card company specifies the credit limit you should be able to enjoy.
Would you believe that there are credit cards wherein you get to specify your own credit limit? Well, you can't actually dictate your own credit limit, but the limit is based on how much you can afford to spend (and pay) monthly.
These credit cards are called Prepaid Cards.
Basically, prepaid credit cards can be likened to debit cards, where your individual credit limits are based entirely on the amount you have either deposited in their account or paid up in advance.
These prepaid credit cards (secured credit cards) are offered or availed of by individuals who have difficulty securing a standard or main-stream unsecured credit card.
Prepaid credit cards in work two ways: The first is that you are supposed to open an account with an affiliated bank or financial institution.
The amount that you are able to deposit would be equivalent to your credit limit.
Once the funds have been depleted, you can easily load more money into your account by depositing a check, remitting funds through money orders, sending money through wire transfers or payroll deposits.
The other way prepaid credit cards work does not necessarily involve opening an account with their affiliated bank.
But you are, on the other hand, supposed to make advance payments which will be used to offset your future purchases.
These advance payments may come directly from your pay check and whatever amount you wish to load (be it the full amount or portions of your salary) will automatically loaded every payday.
So what other the benefits do prepaid credit cards have, apart from having a credit line that would depend on your monthly spending capacity? There are lots actually.
Prepaid credit cards normally require fewer qualifications than unsecured credit cards.
These companies seldom conduct credit checks, ask for security deposits or require employment references.
They do, however, ask for a verifiable address.
In addition to this, prepaid credit cards allow you to earn a little extra money on the side.
Most prepaid card companies have a referral program where they will pay a cardholder a specific amount for each successful referral to their establishment.
Despite the many glowing benefits of prepaid cards, these too have their share of drawbacks.
Apart from the obvious (which is not being able to spend more than what you have deposited, even if you can pay more), is that you are required to pay fees immediately upon approval of your application.
The fees include the application charge and a monthly participation fee.
Unlike standard credit cards where application is free and usually, for new members, they even waive the annual fee for the first year.
Would you believe that there are credit cards wherein you get to specify your own credit limit? Well, you can't actually dictate your own credit limit, but the limit is based on how much you can afford to spend (and pay) monthly.
These credit cards are called Prepaid Cards.
Basically, prepaid credit cards can be likened to debit cards, where your individual credit limits are based entirely on the amount you have either deposited in their account or paid up in advance.
These prepaid credit cards (secured credit cards) are offered or availed of by individuals who have difficulty securing a standard or main-stream unsecured credit card.
Prepaid credit cards in work two ways: The first is that you are supposed to open an account with an affiliated bank or financial institution.
The amount that you are able to deposit would be equivalent to your credit limit.
Once the funds have been depleted, you can easily load more money into your account by depositing a check, remitting funds through money orders, sending money through wire transfers or payroll deposits.
The other way prepaid credit cards work does not necessarily involve opening an account with their affiliated bank.
But you are, on the other hand, supposed to make advance payments which will be used to offset your future purchases.
These advance payments may come directly from your pay check and whatever amount you wish to load (be it the full amount or portions of your salary) will automatically loaded every payday.
So what other the benefits do prepaid credit cards have, apart from having a credit line that would depend on your monthly spending capacity? There are lots actually.
Prepaid credit cards normally require fewer qualifications than unsecured credit cards.
These companies seldom conduct credit checks, ask for security deposits or require employment references.
They do, however, ask for a verifiable address.
In addition to this, prepaid credit cards allow you to earn a little extra money on the side.
Most prepaid card companies have a referral program where they will pay a cardholder a specific amount for each successful referral to their establishment.
Despite the many glowing benefits of prepaid cards, these too have their share of drawbacks.
Apart from the obvious (which is not being able to spend more than what you have deposited, even if you can pay more), is that you are required to pay fees immediately upon approval of your application.
The fees include the application charge and a monthly participation fee.
Unlike standard credit cards where application is free and usually, for new members, they even waive the annual fee for the first year.
