How do pre-pay credit cards work?

The concept is much like the top-up cards used for mobile phones - you load money onto a pre-pay card to spend as normal on the high street or online, and top it up when you run out. The card acts as an account, so you can withdraw money from cash machines, pay bills and use it abroad, as well as transfer funds to other accounts and view statements. Like any other card, you have to sign the back when you receive it, and use a PIN number when making transactions.

The pre-pay card is powered by how much money you put on it, so it%26#039;s impossible to get into debt. This means there%26#039;s no credit check when you apply for a card. It also means they are more secure than debit or credit cards because you can only spend the amount of money you put on the card. For this reason, they are considered a good way to introduce children to money and the concept of budgeting, although this is the subject of much debate.

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sam

How do pre-pay credit cards work?

You give them money, they let you spend money that is yours and charge you for it. Great scam promising help with starting credit

How do pre-pay credit cards work?

Kinda like a gift card. you %26quot;charge%26quot; it by putting money into it, and then you can use it like a credit card, until you have spent allthe money you put in it.

How do pre-pay credit cards work?

Its not a scam as others stated. Companies do this low-risk process for people with bad credit, or just starting out. You send the (reputable) company X amount of dollars and they put it in a saving account. That is the collateral for your credit., However much money you have in the savings account is the credit line for your card. if you ever default, they keep the money to cover their losses.