Prepaid Credit Cards

Prepaid Credit Cards

The terms "Prepaid Credit Card" is often used for "Prepaid Debit Card" but, indeed, the term "prepaid credit card" is a contradiction or oxymoron. Credit cards give consumers a line of credit which means they charge a finance charge for any purchases or cash advances that are made with the card and are not paid back within one billing cycle--typically a month. How high these finance charges can go depends on what card program you select. Leaving a balance owed on a credit card is essentially creating debt that does not have to be paid back in fixed installments but rather "revolves" like a revolving door, as payments to the debt are made and new debts are added to the credit card.

A prepaid credit card is a great asset to have in your wallet. Some prepaid credit cards for traveling will present zero percentage interest on shopping made overseas, if they are made inside a set amount of time from the time while account opening, and some card's even presents tragedy protection should the most terrible come about when out of the country, which acts as a good match to your travel insurance. This can consist of services such as very quick card replacement and emergency hard cash advances.

Prepaid Credit Cards