Pre Paid Credit Card: a Smart Way to Control Spending (cont.)
Contributed by Julia Reese
Since the card is prefunded, there is no possibility of going over your limit unlike traditional cards, where if you do have the mishap of going over your limit, you are stuck with a high fee.
What are the Disadvantages of a Pre paid Credit card?
The advantages far outweigh the disadvantages, but to be fair, I will mention the few disadvantages. One obvious disadvantage is that you must have the money to fund the card before you can use it. So if you are one who likes to have a credit card handy in the event of an unexpected emergency, this would be a drawback if the emergency demands more money than you have on the card.
Also, when you apply money toward the card, there is always an allotted fee that can start as little as five dollars but go upward of fifty dollars, dependent upon the amount of the deposit on the card. But that having been said, these fees still average out far less than having to pay interest.
Having weighed both the advantages and disadvantages of a pre paid credit card, it seems like a smart choice for consumers seeking plastic without strings attached.
