Recently, banks and their credit card related policies have come under the scanner with some of the more questionable methods banks use to try to collect outstanding credit card debts making the headlines. The use of a credit card may not be the best option for some people, who are prone to spend more than their means, and rack up large credit card bills which they cannot pay. Other disadvantages of a credit card include interest charged for late payments, difficulty in getting a credit card for those with a poor credit rating etc.

A great alternative to a credit card is a free Visa Prepaid Card, which works like any other prepaid transaction medium. A prepaid credit card has to be bought from a company, and can then be loaded with a certain amount of money, very similar to a prepaid train card or phone card. Once the credit card has some amount of money to its name, it can be used like a normal credit card, with the limiting factor being the amount of money with which the card has been loaded. Another name for a free prepaid credit card is a stored value credit card. Once the full amount has been spent, the card can be recharged or reloaded with an amount the user chooses.

This system is similar to debit card, and helps to keep a check on your expenditure on your next shopping trip, because you aren’t spending the bank’s money (like with a credit card) but your own. Other advantages of a prepaid credit card are that there is no need for employment verification or credit history while applying for one of these cards.

And unlike a credit card, you can’t actually pay your bill late, so there is no interest or extra fee which you have to pay.
Although these cards are advertised as free prepaid credit cards, most banks charge different types of fees like registration fees or a fee when you load up your credit card etc., so it is important to look out for such hidden expenditures while going for a prepaid credit card.

There are a few other disadvantages of such free prepaid credit cards as well. They might not be applicable everywhere unlike other credit cards. But apart from these few drawbacks, a free prepaid credit card is a great option if you want to control your spending and stay out of trouble with credit card companies.


Visa Prepaid Card