Accept Credit Card Online

  Accept Credit Card Online  - Benefits and drawbacks of a prepaid credit card  - Jul 5, 2007  

For credit card holders prepaid cards or prepaid credit cards as they are known popularly, bring welcome relief from many absurd fees and finance charges. Prepaid credit card bring heaps of benefits and few drawbacks. Besides, bringing immediate relief from exorbitant credit card fees, they also promote financial discipline. Since, you can only use what you have with prepaid credit cards, there is little chance of going overboard and impulsive buying. This article takes a look at some great and some not so great things about prepaid credit cards.

  • Prepaid credit card are very easy to get, often they come with guaranteed approval, no employment verification, no credit checks and very little documentation hassles.
  • With many retail stores offering prepaid credit cards, they are never too far away. In addition to these the prepaid credit cards can be purchased online.
  • An excellent thing with prepaid credit card is the financial discipline it brings and the freedom one gets from paying late fee, over the limit fees, and finance charges at the end of every month. In fact there are no bills to be paid at all.
  • With the sound backing of Visa and MasterCard prepaid cards have a wide acceptability. In some cases they are even more acceptable than credit cards. Because of the fact that in case of a dispute, the credit card company stands with the credit card holder, some merchants are reluctant to accept some credit cards, but even they gladly accept the prepaid credit cards.

Coming on to the bad things about prepaid credit cards

  • Prepaid credit cards have a costly setup fees associated with them. This fees can make your purse lighter by any amount ranging between $5 to $90.
  • Prepaid credit cards provide free loading options at only some preferred locations, and if you want to load them at other retail outlets there is a loading fee. So you have to pay to get money into your prepaid card.
  • Prepaid credit cards don't come into your pocket unless you have paid in cash for them. This is a very sticky situation for those with bad credit ratings, cash strapped and on a tight budget.
  • Some prepaid cards charge you when you withdraw your cash using the ATM's . This gives a very uncomfortable feeling since you deposited the money into the prepaid cards, and when you want to withdraw some you have to shell out some fee, every time.
    Prepaid credit cards are not a good and valid option for recurring payments such as magazine subscriptions etc.

Prepaid credit cards though have few drawbacks, but even these are nothing as compared to the drawbacks of credit cards. The very fact that you never get into debt, never incur late fees, never have constant threat of bankruptcy nagging you and there is nothing to repay anything to anyone at the end of the month makes them a worthy choice.

  Accept Credit Card Online  - 5 important benefits you miss out if you don't have a credit card  - Jun 20, 2007  

If you look around you will definitely find some people who have spent their entire life without using a single credit card and they have done it comfortably. Using just plain cash or debit cards they have managed to carry out all their financial transactions. They can inspire you to think that credit cards are not at all necessary. But wait, what did they miss out? Here are few things.

Building Credit history

Credit history is a thing which is becoming an essential part of our life. It's definitely good to spend cash and live on debit cards and thus do not accumulate any credit card debt what so ever, but this will not help in building any real credit history. Imagine a situation when you need an urgent loan or that great mortgage offer, the lenders will immediately ask for your credit history. So, having a credit card, using it wisely and repaying on time will definitely help in building a good credit history. Lenders look for people who are good at repaying debts, and give them their best rates. Keeping a credit cards and repaying it on time gives lenders the necessary confidence and helps you get money when needed.

Get rid of cash carrying hassles

Credit cards or 'plastic money' as they are known, eliminates the need to carry cash altogether. You can pay all your bills, shop and even get ready cash from ATM's with your credit card. So, if you have a credit card, it can replace the bulk in your wallet and make it light and convenient to carry.

Ready credit limits

Depending on your credit history and financial situation credit cards have credit limits associated with them. Thus when you have a credit card you essentially have a pre-approved loan up to that credit limit. This is big convenience. Imagine when you fall into a sudden medical emergency and you have huge bills to pay, a credit card with a good credit limit instantly rescues you from this grave situation. How else could you pay that bill without borrowing? And if you went to borrow money in such a situation would you get it so easily? Think over it.

Convenient online and offline shopping

The best deals on many things especially in the shopping season are found on websites which sell online. Credit card is their preferred mode of accepting payment. Without having one you could miss out on the convenience and savings that online shopping offers. Most of the offline vendors also accept credit cards happily. Shopping both online and offline becomes a breeze and you are done with just a swipe.

Great rewards

If you fly frequently there are credit cards which reward you for spending money on your air tickets, the rewards are free air travel, hotel stay, priority bookings etc. Similarly, there are gas reward cards, student reward cards, cashback credit cards, travel reward credit cards, store reward credit cards, health reward credit cards and the list is endless. The idea is to reward a customer who spends wisely and repays promptly.

When you look at it from this angle credit cards are a very lucrative option. The benefits they bring, and convenience they offer are simply too great to overlook.

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