What to DO with Your Prepaid Credit Card

A lot of consumers today are opting to use prepaid credit cards over their more popular counterparts. However, not everyone knows how they can effectively manage their current lines of credit.

Now, if you’re a prepaid credit card holder and you wish to handle your card account in the best way possible then, we advise you to observe the following suggestions:

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Make it a habit to check the available balance on your credit card. This is especially true for cardholders who frequently use their lines of credit to cover their bills and purchases. After all, by regularly checking the available balance on your card, you will know whether or not it would still safe for you to charge your transactions on it. At the same time, you will know when to reload cash on your credit card account so that none of your future charges would be declined.

Use it to curb your spending habitsWhat’s good about prepaid card accounts is that they come with automatic spending limits. There’s always a cap on the purchases and bills you can charge on it, based on the total amount you have initially deposited onto your account.

Such feature would surely work to your advantage, if you have problems with uncontrolled spending and impulse buying. After all, the spending limit or cap will most definitely make you think twice before using your account to cover an unnecessary or an unscheduled expense.

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Use it only in participating stores as well as in business establishments that are affiliated with your card issuer. Keep in mind that not all shops and commercial establishments today accept and honor prepaid credit cards. In fact, for most cases, you can only use your account in the store or shop that sponsored it. This is one of the biggest disadvantages of using a prepaid credit card program.

Nevertheless, if you have other card accounts, such as secured or unsecured credit cards then, you can always use them in shops and stores that are not affiliated with your prepaid card issuer. That way, you can still enjoy shopping around and purchasing items from various stores, nearby.

Don’t let it out of your sight, especially when you’re in department stores, groceries as well as in your favorite shops or stores. That way, the cashiers of these shops won’t have the chance to charge on your credit card bills or purchases you never made. At the same time, you can prevent them from gaining details about your line of credit, as well as on the account linked to it.

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Bring cash with you all the time. That way, you can always settle your transactions even if the funds in your prepaid credit card run out. Just make sure that you will bring along with you just enough funds to cover the items you really need to purchase. Otherwise, you might end up spending a great deal of cash on products and services you don’t really need.

Keep these five tips in mind and we assure you that you can always manage your credit card responsibly.

About the Author

Emma Lee is a financial consultant and a freelance writer. She has more than 15 years of experience in helping consumers find the best secured, unsecured and prepaid credit cards. She regularly contributes articles to Secured Credit Card Site to provide readers the latest information about various card programs as well as the latest trends in financial management.

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