The credit card market has a lot of companies to choose from. Some offer small interest rates, some offer longer payments terms, and some offer a large buy vcc initial credit. With all the competition and packages out there, choosing the best card for a first time applicant will be hard and confusing. Fortunately, there is a so-called prepaid credit card.
It is similar to a debit card that has a prepaid amount in it. You deposit your cash in the prepaid card and it would allow you to use it just like a normal plastic without the hassles of a regular one. Also, prepaid cards can help you build up your credit which would be useful in the future in case you want to buy a car, a house, or something expensive.
These cards are easy to get, application fees only cost a small fee but consider what you will be saving in the long run. The amount that you would need to pay for initially would be nothing. Since it is a card, it can be used anywhere and everywhere as long as the retailer or establishment accepts plastic as a mode of payment. You may even use this for online and on-phone transactions.
Since a prepaid plastic card already has an amount stored in it you don’t have to worry about the interest rates soaring up, payment dates, and whether you have the right limit to buy what you want. It is like using cash; the difference is that the cash is already stored. It is like a virtual cash wallet. So when you purchase something using it, it will be as if you already paid for it using cash. No need to wait for the bills to arrive and no need to worry if you have enough money to pay for the bill. Also, since the amount is pre loaded you spend what you have. Although it might be a downside to others, it is an upside to some since they don’t have to worry that they are buying much than what they can afford.
This also helps you build up credit because you are using the services of the issuer. By using it you are safely building up credit for future use. If you have enough credit then you could now opt for a regular charge card that can offer you much more. Also, a minor setback to prepaid card is that the load can be consumed so it is wise to load it when you feel that it has insufficient amount already.