Wednesday, June 17, 2009

Modern credit cards have different schemes to suit every individual’s lifestyle. Prepaid Mastercard club cater to those who spend for entertainment and frequent travelers. The credit limit is usually high and there is no interest to be paid. The credit balance should be paid monthly, except for things like airline tickets in which you have an option of paying on an installment basis. Also, owners of these cards have an annual fee to be paid, which decreases as the purchase volume increase. These markers indicated different amounts that were borrowed. Later on, business establishments adopted the concept and introduced prepaid charge cards to insure loyalty from their customers.

When people choose the right prepaid credit card to use, and then use them responsibly however, credit cards can actually give you little bonuses that make them better than cash. Responsible credit card use means you don’t charge more than you can afford, you pay your balances off in full each month instead of carrying a balance from one month to the next, and the prepaid debit card offers advantages over cash such as cash back. The more you use your credit card, the more points you accumulate which can be converted to cash. Make sure you have the cash to back up the purchases though because if you default on your credit card payments. The only fun part of gaining the points is being able to redeem them for the cash. Make certain you know the rules when it comes to point redemption and expiration so you don’t miss out on the cash back. Remember to read the terms and make sure the card you apply for is the right one for you. Compare different cash back credit cards online before choosing the right one for you.

sunshine smile