To someone who is not well aware of the different types of payment cards available in the market, the matter of selecting one can be a bit complex. It has been seen that many people mix up the details of credit cards with that of a debit card program. Not only this, they are not even clear with the basic purposes of a prepaid card.
In order to help you understand one of these payment cards more closely, in this article, we are going to talk about anonymous prepaid cards. Read on to find out how these cards are different from a debit card program and what essential benefits they provide to the cardholders.
Defining an Anonymous Prepaid Card These are commonly referred to as credit cards but in actuality, their function is similar to that of a debit card program. The significant difference between a debit and a prepaid card is that debit cards are associated with an official bank account of the user, whereas, a prepaid card is linked to a virtual bank where the money is saved. However, in some cases, prepaid cards too, are issued by banks that are in collaboration with various businesses.
No Damage to Credit Unlike credit and debit card programs, prepaid cards do not lend any extra money to cardholders. Consequently, it saves customers from the suspected damage that a loan can cause to their credit scoring. In addition, no credit means no interest, which is again beneficial for the user.
No depletion of credit scoring Debit card programs lend money to the cardholders under the overdraft option. If this debt is not returned on time, it causes harm to the credit score of the user. Since customers cannot borrow any money via prepared cards, it automatically saves them from poor or bad credit scoring.
No adverse affect on credit score Contrary to a debit card program, prepaid cards do not lend any additional money to the customers. Since no-credit means no repaying of debts, it automatically saves them from negative credit scoring.
Shopping within limits A prepaid card also helps you to shop while staying within your boundaries and prevents you from overspending your valuable savings.
Preventing overspending of funds Unlike debit card programs, which lend you money under the overdraft option; prepaid card saves you from the curse of debts. By limiting the customer within the boundaries of available assets, it reduces their expenses.
In order to help you understand one of these payment cards more closely, in this article, we are going to talk about anonymous prepaid cards. Read on to find out how these cards are different from a debit card program and what essential benefits they provide to the cardholders.
Defining an Anonymous Prepaid Card These are commonly referred to as credit cards but in actuality, their function is similar to that of a debit card program. The significant difference between a debit and a prepaid card is that debit cards are associated with an official bank account of the user, whereas, a prepaid card is linked to a virtual bank where the money is saved. However, in some cases, prepaid cards too, are issued by banks that are in collaboration with various businesses.
No Damage to Credit Unlike credit and debit card programs, prepaid cards do not lend any extra money to cardholders. Consequently, it saves customers from the suspected damage that a loan can cause to their credit scoring. In addition, no credit means no interest, which is again beneficial for the user.
No depletion of credit scoring Debit card programs lend money to the cardholders under the overdraft option. If this debt is not returned on time, it causes harm to the credit score of the user. Since customers cannot borrow any money via prepared cards, it automatically saves them from poor or bad credit scoring.
No adverse affect on credit score Contrary to a debit card program, prepaid cards do not lend any additional money to the customers. Since no-credit means no repaying of debts, it automatically saves them from negative credit scoring.
Shopping within limits A prepaid card also helps you to shop while staying within your boundaries and prevents you from overspending your valuable savings.
Preventing overspending of funds Unlike debit card programs, which lend you money under the overdraft option; prepaid card saves you from the curse of debts. By limiting the customer within the boundaries of available assets, it reduces their expenses.
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Finally, we can say that individuals can obtain as much advantages from an credit card program as offered by debit card programs; however it adds more value by providing some additional advantages to them. To experience securer and simpler transactions, obtain your co-branded prepaid card today!. This article, Why Opting For Anonymous Prepaid Cards Is A Better Option? is released under a creative commons attribution license.
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