Reloadable Credit Cards

Reloadable credit cards, also called prepaid reloadable credit cards, are plastic cards, similar to debit cards. The only difference being; to have a debit card, you need to have a bank account, whereas, even if you don't have an account, you can still have a reloadable credit card. You just need to apply for the card, deposit cash with the card issuing bank and you are ready to use the newly acquired card for all your needs.

Reloadable credit cards are different from a normal credit card; it's more like a gift card. There is no line of credit, which you can borrow and can only spend the amount you have deposited. The beauty of using a reloadable credit card is that, you don't need to carry cash with you every time you go shopping and more importantly, you don't need to have a bank account for using it. You can use it in any ATM to withdraw cash or even make purchases online.

Reloadable Credit Cards for Kids

Reloadable credit cards for kids is an excellent option wherein kids and students are exposed to the financial world at a very early age. It's important to know how to spend within a stipulated budget and at the same time make sure that you have enough of whatever is required. They are convenient to use as they can be used anywhere for shopping or paying bills. Moreover, you can also learn how to manage your finances and as a result build your credit ratings.

You need to be more than 18 years to be eligible for a regular credit card, but you can have a reloadable credit card in your own name even if you are less than that. The only thing required to use a reloadable credit card is that your parents need to sign up for you. You can use your reloadable credit card just like a credit or debit card in any MasterCard or Visa merchant centers.

You have the option of reloading your cards through direct deposit and restricting the number of transactions each month. This way you can avail the benefit of waiving off the activation fee and the monthly maintenance fee. Moreover, it also helps students avoid accumulating over-limit and interest charges. These credit cards help parents supply additional funds if their kids run out of cash.

Tips for Buying Reloadable Credit Cards

Most of the major credit card companies, American Express or CitiBank, issue them. Online application has become popular among the masses due to its easy application procedure and instant results. However, there are a few things to remember before buying them. Always look at the list of places where these credit cards can be used. There are certain cards which can be used only in particular locations or in some specific merchant stores. A good option is to go for merchant-based reloadable credit cards, if you prefer a particular location for buying your daily merchandise. Also look for the fees associated with these cards. Depending on the issuer, the fees for using reloadable credit card vary.

If you don't use the card for a specified period of time, the bank deducts some amount from your account. Usually if the card is not used for six months to a year, the card issuer starts decreasing the value. So make sure you consider your usage before buying the card, and also the amount you lose in case you don't use the card for sometime.

Where to get Reloadable Credit Cards

Reloadable credit cards can be applied by anyone, even by a person with a bad credit history. Most banks offer a reloadable credit card which sport either a MasterCard or Visa logo. Once you have applied for the card, you need to fund the card with adequate amounts and depending on your purchasing habits you need to deposit money. Once you have got the reloadable credit card, you need to activate the card. You can opt to activate it either by going to the bank, through phone or online. You can withdraw funds from the card up to a maximum specified limit. But you need to check if there are any processing fees or charges applicable for withdrawing cash.

Thus, reloadable credit cards is a good option to control the amount of cash you spend each month, besides improving your credit score. It also helps to carry out financial transactions easily, by saving your time and all the hassles associated with opening a bank account. So, go for a reloadable credit card and enjoy the shopping experience!