Is prepaid visa card different from credit card?
by Author on Sunday, August 15th, 2010 | 6 Comments
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A prepaid card means you can only spend $100. Each time you purchase something, that amount is subtracted from the value of the card, until there is no money remaining. There are no interest fees associated with this card.
With a credit card, you are basically borrowing money from the credit card company. If you spend $100, you owe it back to them, with interest.
Prepaid – you send visa $100 cash and they send you a credit card with a $100 limit.
pre-paid cards & credit cards are WAY different.
With prepaid cards, your just using the money you’ve already put on to the card. Think like a universal gift card.
Credit cards charge you interest and lots of other things.
With a prepaid card, you have to load money on the card before you can use it. With a credit card, you buy now, and pay later, in installments.
Absolutely!!! A prepaid VISA means that the bank you applied with does not believe that you have suffecient track record to procure a credit card. A prepaid card is essentially a debit card because you have to place cash into an account before you can use it. Also, tha rates are usually extremely high. Your best bet is to go to a department store first and get one of thier cards and keep it up to date for at least six months, then re-apply for a major credit card.
In the US an actual prepaid credit card cost a lot more in fees than a prepaid visa/master debit or gift card.
I like the Simon mall visa gift card. It has no monthly fees for 6 months (12 months in other states). It just has a purchase fee if bought at a Simon Mall location.