Pre-paid credit card is taken by the customer by depositing money with the credit giving company. It can be deposited in the savings account or current account. Once the money is deposited the card
is used as regular credit card. It is very effective card as it does not put you in debt.
Once the money exhausts in the account the credit card cannot be used. There are no interest charges related to this card. It is comparable to a debit card. This card is good for people for bad credit history.
The Pre paid credit card gives all the advantages of a normal credit card without worrying about the interest charges.
Benefits of the Pre-paid credit Card
1. It is accepted at all merchant establishment world wide according to the affiliation of the credit card company.
2. It can be used to withdraw cash at ATMs
3. Reloadable anytime anywhere
4. It can be used to withdraw cash in any international currency.
5. It is usually backed up by personal accident insurance cover
6. Customer has the facility to get online and track spending, check balance, change pin.
Pre paid credit card is becoming famous due to no debt facility and has been added as feature by many Indian banks.
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