Prepaid credit card: Apply for the best credit card!
Nobody wants to do without the worldwide payment method prepaid credit card. Nowadays, it is usually a prerequisite for booking trips and flights. Regardless of the credit record, it is now possible for everyone to apply for a prepaid credit card. In order to provide you with the best possible information, we have prepared a prepaid credit card comparison for a good overview with our finance team and experienced experts. If you would also like to read more about the topic or are interested in specific aspects, you can find a comprehensive guide under the comparison. Find the best prepaid credit card for you now and apply for it directly online!
The prepaid credit card at a glance
- Cost control through the credit system
- No credit check when applying for the credit card
- Independent of income
- Make cashless payments on the Internet and worldwide
- Can be used like the classic credit card
- optimal payment security
- free insurance and discounts
- Also available for children and adolescents, students, the unemployed and the self-employed
- Lower annual fees
The prepaid credit card differs from the classic credit card primarily in the payment function. Because the bank does not grant a credit line, payments made with the card are only processed using the previously paid credit. The credit can be used until it is used up. There are banks that offer prepaid credit cards for free with no annual fee and there are banks that charge a fee. credit record information about the creditworthiness of the cardholder is not obtained. The prepaid credit card definitely works like any other classic credit card. You can conveniently shop online, book a flight or travel.
- If amounts up to 25 dollars are paid at a cash register with a credit card or mobile phone, neither a PIN has to be entered nor signed. It is sufficient if the credit card is held very close to the reader – the payment process works using Near Field Communication, or NFC for short.
A prepaid credit card is often called a credit card without credit record and more and more consumers have bought such a card in recent years. This is certainly also due to the fact that handling is extremely easy. Because you could compare it to the way a cell phone works on a prepaid basis, where you have to top up your credit before you can use it.
Is there a free prepaid credit card?
Prepaid credit cards are often advertised as free of charge and some providers do not have a fixed annual fee, as is the case with other classic credit cards. But since many providers enter into a contract for a year, for example, this can also entail fees. As can be seen in the prepaid credit card comparison, fees may also apply elsewhere – for example when cash is withdrawn from the machine.
The six most important criteria of a prepaid credit card
- Can be used for everyday purposes
- No credit check
- Always rechargeable
- No credit line, no liabilities
- Complete financial control
- Accepted worldwide
Very few people know the advantages of a prepaid credit card. It’s no wonder in the dense jungle of credit card offers. Therefore, it is also easier if you can find out about the conditions of a prepaid credit card by means of a comparison. Before you look at the different and individual offers in comparison, you should also be clear about the purpose of the prepaid credit card: do you want to withdraw cash when traveling abroad or do you mainly use it to make online purchases?
Prepaid credit cards are characterized by a very important advantage: Each holder of one has his expenses under control and does not face the risk of paying for his head and collar. With a classic credit card you get into the red numbers on the account very quickly because you can lose track of your purchases and the amounts of money just as quickly. The idea is always present: I can spend money first, the card has a certain financial credit line and the settlement of the account is only due in a few weeks anyway. With a prepaid credit card everyone knows exactly what money is available on the card and when the credit is used up, the card is empty.Overdrawing is not possible and that gives security. Another protection is theft protection if the card is lost or stolen.But a look at the account statement shows a different picture and a different reality.In the worst case, the amount of money on the card is gone, after which the thief can no longer withdraw anything from the card.
A credit card is hard to imagine without paying online. Because here the whole world of shopping is literally open to consumers. Whether in Germany or abroad, whether online shop or travel portal – cashless with card, payment works quickly and easily. A credit card is even more advantageous if the conventional method of payment with a bank transfer is often not only unsafe but also lengthy when paying abroad. To the satisfaction of many consumers, the regular credit card and the prepaid credit card have become established as a payment system. The latter is particularly suitable for all consumers who want to use their card mainly when shopping online.
Since the rechargeable prepaid credit card is characterized by a complete cost control, over-indebtedness or the overdrafting of a credit line is not possible, but costs could arise that were not expected. It is therefore worth taking a look at the prepaid credit card check:
Prepaid credit card check – these criteria are important
Some prepaid credit card providers charge fees that can reduce card balance. Actually, we usually charge an annual fee that is independent of payments and deposits. In return, you often get a credit interest or discounts on certain purchases. With the free offers, it should be checked whether additional products are not concluded with the application for a credit card. This could be a checking account, for example, which is practical but unwanted.
This function of a prepaid credit card limits the amount of money that can be booked on the card and is recommended to be used by children and adolescents whose expenditure is under control. A prepaid credit card can be requested for children as young as 12 years old. On the other hand, such a restriction can also be annoying if you want to top up larger amounts.
Some think it’s a gimmick, the other attaches importance to individuality – even with a prepaid credit card. Because it is quite possible with some providers to get a black credit card. It gives the appearance of luxury and fortune, but it does not automatically offer the supposed VIP benefits otherwise offered for such a card.
If the design is important, you no longer have to pay attention to a high-profile credit card, as this type of billing has long been outdated: With this form of card design, the card number and name are clearly visible. The printing process is called embossing and was used in mechanical card readers that copy the card data onto carbon paper. However, fewer and fewer prepaid credit cards are embossed. The reason is clearly that the dealer had to rely on the mechanical card readers that the card really had sufficient coverage. Mechanical card readers are rarely used worldwide because the electronic reading devices based on EMC are used instead.
Interest on credit is not uncommon – even in the current low-interest phase. Interest rates between 0.25 percent and up to 1.5 percent are often possible with providers. Anyone who loads a particularly large amount of credit on the card could make the interest payments exceed the possible annual fee.
Protection from attachment
The offer includes some prepaid credit cards that are attachable and others that enjoy bank protection. If there is a risk of a garnishment, you should make sure that you have either a garnishment protection account or a credit card with garnishment protection.
There is no outward difference between credit cards and prepaid credit cards in terms of recognizability. The card contains the logo of the card company and the name of the bank, the EMV chip and a CVC code. In the meantime, the name of the cardholder and the card number have been embossed. However: It is not possible to classify a card as a prepaid credit card simply by looking at it.
- The EMV chip is used for electronic verification and is intended to prevent copying credit cards. In the near future, this chip will replace embossing on credit cards. EMV stands for a common security standard from Europay, MasterCard and VISA. The chip will also replace the magnetic stripe on the back of the credit card.
Discounts & Co
Here you should consider whether you want to use the discounts offered sufficiently so that the fees pay off – because travel and fuel discounts in particular are always among the offers.
Insufficient credit card coverage is always embarrassing. Especially if consumers want to withdraw money with the prepaid credit card or want to pay in a shop or shop. It is embarrassing if the reader at the cash register or the provider of the card refuses to book due to insufficient cover. Since there is no credit line, even the slightest deviations in credit from the desired amount of money can result in nothing being posted at all. It may still be possible to withdraw a small amount at the ATM that is compatible with the current card budget.
Apply for the best prepaid credit card – how it works
It is particularly easy to apply for a prepaid credit card online. After a comparison has been carried out, you will receive a very detailed overview of the offers from card institutions through the information listed there. All important information and conditions for the various prepaid credit cards are listed in the results list.
Credit card companies will be happy to link their offers to additional products such as international health insurance. Such insurance can make sense, but you should still check whether you may not already have this insurance coverage – be it through the health insurance or automobile club.
Once you have found the right prepaid credit card for you, you can click directly to the provider. There you have to enter your personal data in a form and download the contract documents and then send them back signed together with the PostIdent confirmation. You will usually receive your prepaid credit card within a week, which you can then top up and use immediately with a credit.
Prepaid credit card – who is it suitable for?
In general, it is suitable for everyone, but especially as a credit card for children and adolescents. For many parents, the symbiosis of credit cards and children is incompatible. Too often the media reported horrendous sums of money spent by young people with Papa’s credit card. Of course, dads and mothers would like to do without such an action. Nevertheless, it is very important that children are taught how to use cashless payment systems at an early age.This is why the rechargeable credit card is particularly suitable, because the card can only be used to spend the amount that is on the card as credit or that was previously transferred to the card by the parents.The fact that the children have their own money in the form of a credit card is also an advantage because they can use the card on school trips or language trips abroad. This in turn also reassures many parents because the child can compensate for a financial emergency with a credit card. How old children must be as a prepaid credit card holder depends on the provider. As a rule, children from the age of 12 already receive a prepaid credit card.
Bank customers who want to have their finances under control and fear over-indebtedness from classic credit cards also benefit from prepaid credit cards. It is often difficult for consumers with poor credit record, irregular income, unemployed, housewives, low-income earners, students and the self-employed to get a financial product. Because even before banks issue a credit, overdraft facility or a credit card, you should obtain information about the creditworthiness of the customer. The banking institutions are obliged to do this by law and therefore usually ask the customer’s credit record score as part of their inquiries. However, if you apply for a prepaid credit card, you do not need to fear credit record information, because this is not applicable.
The differences between a classic credit card and a prepaid credit card
It grants its holder a real loan, which can be repaid in installments at the end of the month.
Anyone who has such a card must pay the total amount of all bills paid with this card at the end of the month.
With this version of a credit card, the amount is deducted from the checking account immediately after the payment process.
Prepaid credit card
It can only be used when it is loaded with money and has a balance. Therefore, unlike the other cards, it may take some time until the money is booked on the card and it is ready for use. There are also so-called limits for charging, for which fees may also be charged. Another difference is that the card can also be issued to children and adolescents, as well as the absence of a credit check.
At first glance, the individual credit cards are neither serious nor visible from the outside. All cards have a CVC code and an EMV chip, which enable cash withdrawals from ATMs and cashless payments in shops. The only differences are in the online access to the card accounts, which enables contactless payment processes via payWave (Visa) or payPass (MasterCard).