A prepaid credit card is exactly what the name implies. You load cash onto one of these cards and then use it just like a traditional credit or debit card. Every time you purchase services or goods, the purchase amount will be automatically deducted from your card. You can only spend up to the card`s value.
A prepaid credit card offers many benefits, particularly for those planning to travel.
Prepaid Travel Credit Card Benefits
One big advantage to using a prepaid credit card for travel is that it is very easy to use. Simply withdraw money at an ATM or charge purchases at any merchant that accepts credit cards and you`re good to go.
If you plan to visit several countries that use different types of currencies, using a prepaid credit card means that you won`t have to carry multiple currencies around in your wallet. You also won`t have to wait in line at the airport or a bank to exchange currency. You can simply start using the card as soon as you arrive at your destination.
Prepaid credit cards also offer various security features. If your wallet is lost or stolen, you won`t have lost all of your funding. You can obtain a replacement card with all of the remaining funds still available for you to spend.
Some prepaid travel card companies offer emergency services to cardholders. You can call the company`s toll free number if you need help with tricky situations such as legal problems, medical emergencies, translation assistance and lost passports, wallets or luggage.
You can easily check your balance on the card issuer`s website just as long as you have internet access. You can also typically add funds to the card on the company`s website or over the phone.
Prepaid travel cards help you stick to your vacation budget since you can`t go over your credit limit. Prepaid travel card providers also don`t require a credit check, so this is a great option for those with a poor credit history.
Fees
Prepaid travel cards come with a wide range of charges, which will vary according to which card you use. Some of the more common fees you might encounter include application fees, replacement fees, annual fees, transaction fees and ATM withdrawal fees.
Some prepaid travel credit cards also charge either a flat fee per transaction or a percentage of each transaction amount. Others charge an inactive fee if you don`t use the card in a specific amount of time.
A good rule of thumb is to never overload a prepaid card with funding. Most companies will charge you a hefty fee to refund it.
Considerations
Always research your travel destination to make sure the businesses in that area accept credit cards. If you plan to visit a popular tourist destination or a major metropolitan area, you probably won`t have any problems finding merchants that accept credit cards. However, if you plan to travel to a remote area, you will want to have hard currency on hand.
There are numerous prepaid credit card companies that you can easily apply to online. Use the free comparison tools at the Simply Finance website to help you find a prepaid travel card that suits your particular needs.