Prepaid credit card: When is such a card worthwhile?
Some are happy that they exist, others call a prepaid credit card absolutely nonsense. There’s no question about it: the spirit and purpose of a prepaid credit card are divided. The prepaid credit card has experienced a remarkable upswing in recent years. There is hardly a German bank that does not offer a prepaid credit card in its portfolio.
In this respect, this card can actually be no nonsense, even if traditional banks offer it – right? Rather, the question arises from this point, for whom is such a card actually worth it? It is undisputed that a not a small number of consumers choose such a credit card. After all, this is not even a credit card in the traditional sense. Finally, in order to be able to use the card wisely, you have to load an amount onto this card. Plain text: No money on the card – no use!
The number of prepaid credit card providers is growing with the Internet
Ok – this does not apply in general because some cards are debited directly from the checking account. But here again the question arises, what is the advantage over the conventional EC card? The Internet itself provides the answer to all these questions! Prepaid credit cards are experiencing an upswing with the increasing use of the Internet. There is hardly a shop or online offer that can be used with a payment method other than the credit card. The credit card is the most accepted form of payment on the Internet – and the trend is still rising!
The Internet therefore presupposes that you have a credit card when it comes to buying products, using services or accessing paid information. The advantage for providers of such products and services is obvious: the goods are only delivered when they have been paid for. This is exactly the quickest way with a credit card. But what about those people who are denied a “normal” credit card due to their poor credit rating and / or low income?
Prepaid credit card makes sense if the credit rating is bad
A prepaid credit card makes sense if your creditworthiness is at most mediocre. Because a large number of providers of such cards do without the normally mandatory credit check. This guarantees that you can get such a credit card even with a bad credit rating. With which, at least in online life, you regain a certain amount of financial freedom.
However, only to the extent that you are able to transfer your own money to this card. Because as already mentioned: If the card has no credit, it is simply not possible to use it. However, just like with a normal credit card, it is important to check the costs of a prepaid credit card. Because the conditions of the individual prepaid credit card providers differ considerably. In this respect, it is always advisable to carry out a corresponding comparison of conditions when selecting a provider.