4 Pointers for Prepaid Credit Card Users

February 1st, 2013 · No Comments

Image from www.freedigitalphotos.net.

Image from www.freedigitalphotos.net.

Are you currently managing a prepaid credit card? And would you like to know how you can effectively and responsibly handle your line of credit? If you answered YES to these two questions then, we advise you to carefully observe the following suggestions:

Don’t let the funds on your account run out. After all, losing cash on your prepaid card can increase your risk of getting penalized with overdraft charges as well as of encountering declined transactions. So as much as possible, you should draw up a schedule for replenishing the funds on your credit card. That way, you can continue making cashless transactions with it.

We also advise you to make it a habit to regularly check the available balance on your account, before charging your bills and purchases on it. In so doing, you will easily know whether or not it is still safe for you to charge your expenses on your prepaid credit card. If it is then, there’s no need for you to worry about your transactions. In fact, you can shop till you drop, so to speak. Otherwise, you may have to pay for your purchases and bills in cash.

Be mindful where you use your credit card. Keep in mind that not all stores and business establishments today honor prepaid cards. In fact, you may soon find out that only the firms affiliated with your card issuer would accept your line of credit and process your transactions, without delays.

Image from www.freedigitalphotos.net.

Image from www.freedigitalphotos.net.

Hence, we advise you to use your prepaid credit card only in the shop or store which sponsored or released it. And when shopping in commercial establishments which don’t honor your card, it would be best to pay for your purchases and bills in cash or to use your other card accounts, such as secured or unsecured credit cards, if you have them.

For those who decide to use their prepaid cards when shopping online, make sure that you will use your respective accounts ONLY in sites, web pages, and online forms that are equipped with excellent security features. That way, you can prevent hackers, fraudsters and the software they use from gaining access to the balance available on your prepaid credit card as well as from using your personal information for illegal purposes.

Keep receipts. Always remember that such financial records can be powerful tools not only for keeping track of your credit card charges. They can also help you detect when an unauthorized party has gained illegal access to your account and is using your card balance, without your knowledge.

Image from www.freedigitalphotos.net.

Image from www.freedigitalphotos.net.

Stick to responsible credit habits. Although you’re the one providing yourself with cash you can use to cover your bills and purchases, it doesn’t necessarily mean that it’s okay for you to go overboard and max out your credit card. Remember that charging unnecessary or unscheduled expenses on your account might ruin your personal or household finances.

This means that if you’re on a tight budget, you should see to it that you will ONLY charge on your account transactions that are really important, urgent and/or necessary.

About the Author

Alexandra “Alex” E. Smith is a certified finance expert and one of the featured writers of  Bad Credit Credit Card Site– a website that caters to questions about bad credit-credit cards, such as secured and prepaid credit cards. For more information about credit cards for bad credit, please visit their site today!

Image: FreeDigitalPhotos.net

Tags: Articles · card issuer · credit · Credit Card · credit card charges · Personal Finance · prepaid credit card · Prepaid Credit Cards · unsecured credit card

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