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First you apply
for the credit
card using your
Internet
browser, prepay
credit card
application
forms are
relatively
simple and ask
for minimal
information on
you and your
circumstances.
Prepay credit
cards do not
require a
credit
check. So
if you have a
poor credit
record, or have
been made
bankrupt,
obtaining a
prepay credit
card will not
be a
problem.
Prepay credit
cards can be
used by people
from the age of
13 and above
and can be used
in exactly the
same way as you
would use a
normal credit
card. They
can be used in
shops, petrol
stations, post
offices,
supermarkets
etc.
Once you have
your prepay
credit card,
and it will
take 10 to 14
days from when
you have
completed the
application
form to
arrive, you
simply load the
card with money
and then able
to spend this
money usually
within the
hour.
The prepaid
card can be
reloaded with
funds at post
offices, banks
online by
specialist
retailers who
have
arrangements
with card
providers, and
most
interestingly,
by your
employer. This
means your
salary can be
paid straight
onto your
prepay credit
card, meaning
you don't even
need to have a
bank
account.
Before deciding
on the card,
you are going
to apply
for. It is
a good idea to
check the
various
charges, each
card provider
makes, as they
are all
different. And
careful
selection will
insure you
choose the card
most
appropriate to
your
circumstances. I.e.
if you use cash
and draw funds
from an ATM
machine it's a
good idea to
select one with
a low ATM
fee. If
you use the
card regularly
for substantial
amounts of
money it may
well be
worthwhile
paying a
monthly fee,
and not paying
recharge or
payment
fees. Just
make sure you
fully
understand the
terms and
conditions
before choosing
your
card.
You can have
more than one
card, and can
use each card
different
purposes for
example. You
could have one
card for
petrol, one
card for the
supermarket,
one card for
clothes, and
separate out
your
expenditure,
which makes it
easy to budget
and plan
forward.
You could give
a prepaid
credit card to
your children
and pay their
pocket money or
allowance,
straight onto
the card from
your
bank.
Once you have
loaded funds
onto the card,
you can spend
the money as
you require,
and these funds
will be
deducted from
the
card. Once
the card has no
funds on it you
cannot spend
any more money
and must reload
the card with
further
money.
The obvious
benefit to this
is you can
never go
overdrawn and
will never
incur charges
for going
overdrawn by
mistake. If
you do attempt
to spend money
that is not on
the card the
card will
simply be
rejected. The
card will not
be banned or
gobbled up you
just reload the
card with more
funds and carry
on
spending.
The prepay
credit card is
a great concept
for those
people who
travel
especially
those people
travelling
abroad, and it
takes the
hassle out of
carrying cash
and obviously
reduces the
risk of
theft. Using
the card online
will also
protect your
main bank
account from
identity
theft.
Overall, the
prepay credit
card is an
exciting
development in
the financial
services world,
and as long as
you understand
the fee
structure of
the card you
choose the
benefits of
this card
system can be
substantial.
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