Secured Credit Card Vs Prepaid Card.

News About Credit cards In India

Prepaid cards vs. debit cards:

A prepaid card is not linked to a bank checking account or to a credit union share draft account. Instead, you are spending money you placed in the prepaid card account in advance. This is sometimes called “loading money onto the card”.

In most cases, you can’t spend more money than you have already loaded onto your prepaid card. Overspending can occur with a checking account for some types of uses, and with a bank account debit card if you have “opted in” to your bank’s overdraft program. This means that your bank may charge you a fee for covering the cost of a purchase or ATM withdrawal that exceeds what you have in your account. Your bank will also require you to repay the overdraft.

Click on the link to know more about the difference between a prepaid card, a credit card, and a debit card:

https://cardinsider.tumblr.com/post/676973219198238720/secured-credit-card-vs-prepaid-card

Prepaid cards vs. credit cards:

Prepaid cards are very different from credit cards. This can be confusing because both types of cards may have a card network logo such as Visa, MasterCard, American Express, or Discover on them. When you use a credit card, you are borrowing money. Generally, when you use a prepaid card, you are spending money you have already loaded onto the card in advance. If your prepaid card provider also offers credit (including overdraft) on your prepaid card, it will need to comply with all the rules for other credit cards.

Listed below are some of the benefits of Prepaid Credit Card:

• Prepaid Credit Cards can be an efficient budgeting tool as it helps you stick to the certain spending limit
• Card issuance is straight forward: no employment verification/ no credit score
• No need to have a bank account.
• Some banks allow ATM withdrawals.
• No debt/interests.
• Pay utility bills or any good and service.
• Function as a gift card or travel card.
• Pay employees' salaries.

Credit Cards

Credit Cards including Visa, Mastercard, American Express are issued by banks or financial institutions allowing people to borrow money in the form of a card that has to be paid back in full amount by a certain date or in installments over time, with added interest and other agreed-upon charges. In simple terms, the issuing bank pays for your purchases on your behalf and you incur a debt that you will have to pay back later to the bank.

Listed below are some benefits of credit cards:

• You can build your credit score when used responsibly. This will help in obtaining loans or mortgages later in your life.
• Security: If even your card gets lost or stolen, your funds are safe and will be reimbursed
• Credit cards offer many rewards such as cash back, rewards points, travel, and shopping perks, etc.)
• Many credit cards provide purchase assurance and extended warranties on your purchases. You can do a chargeback when the goods or services are not delivered.