Prepaid Credit Cards Help People Stick to Budgets

March 31, 2012 by  Filed under: Credit 

Not everyone is excited about the opportunity to get a credit card because many people worry that they will accrue debt that will be difficult to pay off on time. Charge cards can be a good thing or a bad thing, all depending upon how a person uses it. Prepaid cards can provide a perfect way for people to have access to purchasing online items, having extra money for emergency expenses, and being able to rent a car or make a reservation. The card only allows the person to spend how much he or she has previously deposited into the card account. This method of using a credit card always ensures that the amount spent will not exceed the amount of money a person has.

Many parents purchase prepaid credit cards for their high school students and college students. These cards can be used by the students for food expenses, clothing, and gas for vehicles, insurance payments, book costs, and entertainment purposes. If the student also has an unexpected expense arise, such as a prescription when he or she is sick, or a car repair, the prepaid charge card can be used to take care of these expenses. These cards are ideal for adolescents and young adults because it keeps them on a limited spending limit while still giving them access to money when it is needed for important situations.

Prepaid credit cards are available to anyone and also make ideal gifts for holidays and birthdays. In addition to being good gifts for holidays and birthdays, prepaid cards can be wonderful gifts for wedding presents. Newly married couples can use the prepaid credit gift card on their honeymoon to help keep expenses down. These cards sometimes have an annual fee and sometimes they have a one-time purchase fee at the point of transaction. How much the fee will be and whether or not the fee is annual or a one-time fee due at the point of sale will be dependent upon the type of prepaid card it is and on the company offering the card.

Many people have discovered that using a prepaid card is an excellent way to have access to a charge card when needed and yet still stick to a budget. Having a large limit can be a temptation that can cause people to overspend and then accumulate a debt that they cannot pay off when the monthly bills are due. Prepaid charge cards can range in limit from fifty dollars up to three thousand dollars. These amounts are standard limits for most prepaid cards; however, a few select companies will offer more extensive limits.

It is important to be able to have access to a credit card as they are commonly required to make a variety of purchases. Credit cards also are required by car rental companies, hotels to reserve a room, and to make a purchase online.

Visit http://www.creditcardrates.com to find the best credit cards for you and some of the lowest credit card rates around.

Article Source:
http://EzineArticles.com/?expert=Greg_M_Beaumont

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