Introduction: Hello friends today we are here with a great information of Prepaid Credit Cards Benefits and Types. Prepaid Credit cards will be provided by banks and financial institutions and these can be used for any transactions in the same way you use a credit card. Prepaid credit cards online India will be provided to you with funds which are loaded into them and these will work by making use of a simple process. These are not like normal credit cards which work on the credit borrowed from the bank. You will be able to make purchases by making use of the funds which are present on the prepaid card. This is somewhat similar to gift cards like you can make purchases until there are no funds on the card.
The main advantage of a prepaid credit card is that you will be able to make purchases or transactions without having any debts or paying large interests. Also, there is a limit which you will be required to adhere to, as purchases should be made only up to the amount which is available on the prepaid card. A nominal issuance fee will be charged on this card by the banks or financial institutions when a prepaid card is provided to you and the credit score of yours is not a main criteria of eligibility at the time of approvals. In the same way, a prepaid credit card will not contribute in a large way for the improvement of the CIBIL score of an individual.
Prepaid credit cards benefits
- You can use these prepaid credit cards for making payments of any goods and services and you will not be required to undergo any difficulties while making transactions using cash.
- You can make use of open looped prepaid cards for making cash withdrawals at an ATM.
- Spends will not be exceeded as customers will be able to plan their expenses in an easy manner and buy goods only with the card limit.
- As long as there is validity on the prepaid card, you will get additional cash for emergency purchases and transactions.
- Your credit score is not a key criteria for getting qualified for a prepaid credit card.
- Prepaid credit cards are the ones which are the simplest to get if you are not looking for any type of credit card.
- You can use prepaid credit cards for payment of outstanding bills by making use of your mobile phone.
- If you are not holding any bank account and you are an employee, you can get your salary in the form of prepaid credit cards by your employers.
- Your prepaid cards will also work like a gift card and these can also be used as travel cards for loading currency when you are travelling overseas.
You may also check the Air India SBI Card Benefits.
Types of prepaid credit cards
There are several types of prepaid credit cards available in the market and this will vary based on the card issuer.
Open looped cards
Open looped cards are the ones which are branded with the network to which they are affiliated to and these are also called open-system cards. Each card will have the brand logo of the affiliate and this will be issued by banks in collaboration with American Express, MasterCard or Visa. All the cards which are open looped are accepted at locations and merchant stores approved banks.
The acceptance of the closed-loop cards is completely restricted to the affiliated merchant store for purchasing services and good at only those stores. Gift cards will be mostly issued as closed-loop cards.
Semi-open looped cards
Like hybrid cards, semi-open looped cards will be accepted by many merchant stores or chains, who are associated with the card. Most of the cards are issued by retail store chains or shopping malls and these can be used at locations which are carrying stores with these brand names.
Most of the prepaid credit cards come as reloadable cards where you can add more amount of funds once the amount held in the prepaid card has been used.
Again gift cards come under this category as once you use the money available on the card, reloading is not possible. You can make purchases only up to the limit available on the card.
That’s all floks about Prepaid Credit Cards and their benefits. You can use these cards for your Travel.