The usefulness of a credit card. A credit card is usually reserved for the better earning. It is also one of the most common means of payment, both online and in-store, especially when larger payments are due. Some things, like a flight ticket booked online, can only be paid for with a credit card. However, paying for online orders by credit card also has a clear advantage in everyday matters: the speed of delivery. Since payment is made directly, shipping can also take place immediately. Nevertheless, it is understandable if you do not want to buy a “normal” credit card, but there is an ingenious alternative here: the prepaid credit card.
What is a prepaid credit card?
You actually know the term prepaid (“prepaid”) from the cell phones, where you could top up your credit and then spend it. Exactly this principle has been transferred to the credit card and there is already the prepaid credit card. You can top up the Predpaid credit card as well as the mobile phone with credit, which can then be used up. The principle protects against over-indebtedness and if you don’t need a normal credit card all the time, these prepaid credit card models are the most advantageous.
What are the differences to a normal credit card?
In the case of a so-called postpaid credit card, ie a “normal” credit card, there is a credit line on it that is not available for a prepaid credit card. With a prepaid credit card, only the credit that has been loaded by the user can be used. The prepaid credit card is also often searched under the term credit record-free credit card – this already says that there is no credit record information or credit check for a prepaid credit card. With a “normal” credit card, however, yes. There is also a significant difference that everyone can get a prepaid credit card, including students, in the case of ALG II, in the event of personal bankruptcy or an affidavit.
What are the similarities?
With both credit cards, whether postpaid or prepaid, cashless payments can be made worldwide and money can also be withdrawn from ATMs. The functionality of a prepaid credit card is basically the same as that of a “normal” one. You can also shop online, book flights or use other services. With the prepaid credit card, debits that have been made incorrectly can be posted back.