A Credit-Free Card: What Is A Prepaid Credit Card?
In this high-tech era of computers and machines, the purchasing power of people is mostly based on credit. Nowadays, credit cards are almost indispensable in almost any business transaction. For one, nobody can purchase anything online without a credit card.
People who have a poor credit history though, will have a hard time getting or renewing their credit cards. This is where prepaid credit becomes useful.
There are lenders that offer prepaid MasterCards and/or prepaid Visa Cards. Both these cards can be used like a regular credit card. It is even hard to distinguish which card is prepaid or not, by simply looking at it or even using it.
This is basically how prepaid credit cards work. When an account is opened, the card should be “pre-loaded” with cash up-front. This is like paying for a pre-paid calling card.
Prepaid MasterCards or Visas can be used anywhere as long as these cards are accepted.
The prepaid credit card advantage:
1. Prepaid credit card can be easily obtained. It can be purchased online or in local retail stores. It does not require any credit check or proof of income.
The only thing to do is to fill out an application, pay a small fee for setting-up the account and load the card with cash. The amount of cash loaded will be the “credit limit”
2. No interest charges.
When a prepaid MasterCard or prepaid Visa is used, there is no interest charge unlike the regular credit card. The reason for this is that the money used is the owner’s actual money therefore no interest is needed.
3. Prepaid credit cards are free from financial or credit problems.
4. Prepaid cards can be used almost anywhere. Prepaid MasterCards and Visa cards are almost accepted anywhere in the world.
Disadvantages of Prepaid Credit Cards:
1. Usually a set-up fee of 5 to 50 dollars is needed when an account is opened. Then another fee of $5 or more is paid every time more money is loaded onto the card.
Regular credit cards usually do not charge a set-up fee or annual fees.
2. Cash up front is needed before any purchase could be made with the prepaid card.
This could be an advantage since compulsive spending can be avoided.
3. There are some prepaid credit cards that cannot be used to pay regular payments such as monthly electric consumption or online services.
The prepaid credit card is a definite help for people who have past credit problems. It is just a matter of choosing the right prepaid credit card that suits ones’ needs.
American Express Blue Sky Card: No More Restrictions!
One of the chief complaints heard from consumers regarding rewards credit cards are those cards that promise the world, but restrict you from getting there. Specifically, credit cards that allow you to accumulate a large number of points within a short period of time, but when it comes time to redeeming those points for free air miles, restrictions kick in. All those points and no where to go…at least on your schedule, that is. Well, American Express is doing something about all of that and its recently introduced American Express Blue Sky card is certainly getting a lot of attention. American Express is saying “farewell” to travel rewards restrictions and you can too. Please read on for all the exciting details!
Restrictions: Who Needs Them?
Planning a trip can be enough of a hassle without worrying about rewards credit cards restrictions. Arranging time off from work, booking the hotel room, renting a car, and more is half the battle with the other half of the time spent trying to figure out which dates you can fly on. Oh, sure, you can fly whenever you want, but not if you are relying on redeeming your rewards credit card points. In most case, blackout periods will determine when/if you can fly. Getting there can be hassle because of redemption restrictions.
Fortunately, the American Express Blue Sky card has changed all of that. If you have the Blue Sky card you can:
Travel where you want, when you want: there are absolutely no blackout dates or travel restrictions. That means you can fly to Paris at the height of tourism season or to Honolulu whenever you want. No restrictions on renting a car, booking a hotel room, taking a cruise, etc.
Be free of fees: no annual fee and a 0% APR introductory rate for the first six months.
Accumulate points fast: Spend one dollar and get one point. On everything!
Benefits Beyond the Standard Package
The American Express Blue Sky card offers many other benefits well beyond the typical rewards card. They include:
Express Cash: When you need cash on hand, you can visit one of over 500,000 automatic teller machines and access your credit line. This can be helpful especially when you need cash to tip your porter or pay for a taxi.
Insurance: When you charge your cruise, flight, rail, or bus ticket to your American Express Blue Sky card you are automatically covered for up to $100,000 for accidental death or dismemberment.
Car Rental Loss/Damage Insurance: Paying $8-$16 per day for rental insurance on cars is a thing of the past when you charge your car rental on your American Express Blue Sky card. For a one week rental, that can mean big savings for you!
Clearly, the American Express is addressing the number one complaint consumers have had with airline credit cards by removing blackout dates and travel restrictions with the Blue Sky card offer.