When we mention about the word ‘prepaid’, the first thing that comes into our mind is the prepaid card used for mobile phones. The fact that prepaid credit card actually exists in the market now surprises many consumers including me. When I first worked in the banking field a few years ago, I was taken aback when my colleagues had a discussion on how to market prepaid credit cards among fresh graduates. Having no experience at all in the banking arena, I started searching for information about prepaid credit cards.
After much research, I finally understand what a prepaid credit card is and what benefits it offers to consumers. It shares some similarities with both debit and credit cards and hence, it gives the best of both worlds. In the following paragraphs, I will discuss on why you should use a prepaid credit card in today’s revolutionized banking world.
Every credit card application has its own procedures for consumers to abide by. One of the prerequisites for the application is submitting an income document. For your application to be successful, you need to meet the minimum income requirements for a standard-tier credit card. Hence, fresh graduates with lower starting income and students without any income will not even qualify to apply for one. However, the prepaid credit card applications do not need any salary slip or EA form.
Besides, you definitely have no chance to spend over the credit limit.A prepaid credit card works like a debit card, as the card holder has to preload the credit card with a certain amount of money before you can start spending. For instance, if your credit card only has RM 500 but you intend to buy an appliance worth RM 600, you will not be able to use the card for the bill payment. Therefore, this is a good option of credit card for compulsive shopaholics who could not resist the promotion deals all year around in Malaysia.
Also, if all these while you are deterred from possessing your own credit card, fearing the possibility of racking up debts from towering interest, then prepaid credit cards will prove you otherwise. Conventional credit card users are charged with high interest rates, making them more susceptible to accumulate debts in the long run if they have the tendencies to miss the payment due dates as well as overspending. On the other hand, prepaid credit card users can only make purchases with the preloaded amount. Since the purchase is not done on credit term, no ‘interest’ is charged on the card users,
Apart from all these, prepaid credit card holders are exempted from paying the annual government tax of RM 50 for every principal credit card. Nevertheless, prepaid credit card works exactly like the conventional credit card in which you can even make online payments with it. In addition to that, you may also be entitled with rewards just like what the other credit cards do. Check out the credit card comparison site to find out the benefits offered by different banks.
Ultimately, you should make the right choice based what you need and prefer. It is definitely a wise choice if you currently consider switching from the conventional cards to prepaid credit cards.
Still not convinced with the benefits the card can offer you? Read this article entitled Prepaid Credit Cards Malaysia for more information.
Prepaid credit card?
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