How prepaid credit cards are advantageous to college students
Prepaid credit cards are quite advantageous to a college student, especially if he/she is staying away from home. By using these cards, the students can have access to cash in case emergency situations. At the same time, these cards check overspending habits as you cannot use more than the available balance on your card.
How a prepaid credit card works : –
Prepaid credit cards are similar to gift cards as you need to deposit an amount in your card. You can use this card for making purchases and every time you use it, the amount of purchase gets debited from the available balance. Once you’ve used the entire balance, you need to deposit money into your card in order to use it again.
Advantages of prepaid credit cards :-
It is quite important for college students to learn how to budget expenses. Prepaid credit cards can help them to plan a budget as they have to limit their spending according to the available balance on the prepaid cards. It helps them to check overspending habits and thus avoid accumulating debts on the cards.
Some other advantages of prepaid cards are given below.
1. Qualify with bad credit record : – As already mentioned, you need to deposit an amount in order to use a prepaid credit card. So, you can get such cards even if you don’t have a satisfactory credit record. Moreover, some of the prepaid card issuers report your payment details to the bureaus thus helping the students to build a credit history from a young age.
2. Protect personal information : – You don’t have to disclose your bank account information while using prepaid credit cards for online transactions. So, it can be said that prepaid cards offer better protection against credit card fraud.
3. Easy access to cash : – The college students can have easy access to cash with a prepaid credit card. Cash can be easily withdrawn from an ATM as and when required.
4. Not having to worry about late payments :- With a prepaid credit card, you don’t have to worry about late payments or any other finance charges. You can spend the amount in your account whenever you want, without having to pay it back.
While taking out prepaid credit cards, it is advisable that you read the terms carefully before signing the dotted line. It will help you to have a clear understanding of the terms and conditions of your prepaid credit card.
Processing your request, Please wait....
