What Is a Prepaid Credit Card?

The prepaid credit card is a tool that you can use wherever credit cards are accepted. With this type of credit card, you are actually going to have to send money to the credit card company before you can use it. The credit limit on the card is equal to only the amount of money that you have already prepaid. This means that you will not have a credit limit in excess of this amount.

One of the major benefits of using a prepaid credit card is that it is safer than cash. If you use a prepaid credit card, there is a chance that you can get your money back if you lose the card. If you have the card stolen or lose it, you can simply call the credit card company and tell them to deactivate the card. If you lose cash, the odds of recovering it are very slim.

Another benefit of this type of payment method is that you can use a prepaid credit card to purchase things online, whereas cash is generally not an option for online purchases.

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