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Advantages Of Prepaid Cards

By Vickey Kumar on July 28, 2012

No credit checks - This is because there is no lending involved so your credit history is irrelevant. The issuer will, however, do an identity check.You can't overspend - Your card will be refused if you go over the amount you have loaded onto it.Just like a regular credit card, you get a statement with a full list of all transactions on it, so you know what you spent and where.Most prepaid cards can be used abroad in ATMs. You can also get cards that reflect the monetary unit of where you're going. For example, you can get a card pre-loaded with dollars or with euros.

advantages of prepaid cards

These card issuers also tend to offer a preferable rate to a high street bureau de change or even your bank.You can get one for your children so you're sure they've always got access to emergency cash. For example, if you have a child who's away at university and you get one of those 'Can I have some money please' calls, you wouldn't have to go through the hassle of putting money into their bank account. You can simply top up their prepaid card online and it registers instantly.

Prepaid credit cards

Prepaid cards are not a new idea - we've probably all bought gift vouchers or used mobile phone top up cards - but they are a new slant on the concept. The cards look like every other debit or credit card but the real difference is that you can only spend what's already loaded onto the card.

Obviously the biggest advantage of this is that you aren't ever going to run up a great big credit card debt because your card would be refused at the point of sale if you don't have any money on it. The other primary advantage is that it saves you having to carry cash which could get lost or stolen.

Debt consolidation - how it works

The concept of a debt consolidation loan is simple; it's a big loan to pay off several smaller debts. It may seem to be an ideal answer if you've got lots of credit card debts for example, but there are pitfalls to consolidating. The biggest is that once you've paid off all your credit cards, instead of cutting them up, you might start spending on them again. So then you have your big loan to repay and you're back to making card payments too.

Another problem is that if you take the consolidation loan out over a long period, it can seem great that your monthly repayments are so low but if you work it out, the chances are you'll end up paying much more in interest and for a much longer time than if you'd just paid off your cards as you were doing.

The concept of a debt consolidation loan is simple; it's a big loan to pay off several smaller debts. It may seem to be an ideal answer if you've got lots of credit card debts for example, but there are pitfalls to consolidating. The biggest is that once you've paid off all your credit cards, instead of cutting them up, you might start spending on them again. So then you have your big loan to repay and you're back to making card payments too.

Original article published on SooperArticles.com

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