There are many ways of budgeting your spending and handling finances aptly, and applying for a prepaid card is one of them. Prepaid credit cards are becoming increasingly common, particularly among people who wish to control their spending better, don't have a credit history, or want to refrain from overspending.
Different Types of Prepaid Credit Cards in India
- Open looped cards – Also known as open system cards, these prepaid cards are issued by banks in India in association with MasterCard, Visa, or American Express.
- Semi-open looped cards – This prepaid credit card is accepted by multiple merchant outlets. For example, merchant outlets or chains in affiliation with the prepaid card issue this to users, and they can be used at any store where these brands have their chains. Like a card from DMart or PVR, branded hotel chains, etc., are useful for buying goods and services with them.
- Closed loop cards – You can apply for a prepaid card that is a closed loop once if you are looking for credit cards restricted to an affiliated merchant outlet.
- Reloadable cards – The majority of the prepaid credit card India offers are reloadable, wherein the customer can continue to add funds once the amount has been used up.
- Non-reloadable cards – Once the cardholder uses the money available in this card, it cannot be reloaded. Gift cards are an ideal example of non-loadable prepaid credit cards.
Features and Benefits of prepaid credit cards in India
- No credit check: You do not need to go through a credit check to purchase a prepaid credit card because you are not borrowing money. This makes them an excellent option for customers with no credit history or poor credit scores.
- No interest charges: Since you are not borrowing money, you won't be charged interest on your purchases, making prepaid credit cards a good option for those who want to avoid debt.
- Easy to obtain: Prepaid cards are easy to obtain since they do not require a credit check. You can apply for one online or through the bank, and it usually takes a few days to get the card.
- Reloadable: Prepaid credit cards are reloadable, which means you can add money to them as needed. This feature is especially useful for those who want to manage their spending or for parents who want to give their children an allowance.
- Accepted globally: A prepaid credit card is accepted like regular credit cards. This makes it an excellent option for those who travel frequently.
- No overdraft fees: Because you can spend only money that has been loaded onto the prepaid card, you won't be charged any overdraft fees.
- Can help build credit: Some prepaid credit cards in India offer a feature that reports credit bureaus of your payment history. This means that by responsible use of this card, you can also build a credit history.
- Offers and rewards: Some prepaid cards in India come with offers and rewards, such as cashback on purchases or discounts at select merchants.
Because you may only spend the money you have placed onto the card, prepaid credit cards are a fantastic method to manage your finances. This tool might help you prevent overpaying and budgeting your money. Consider acquiring a prepaid credit card India offers if you want a quick and secure way to handle your funds.
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Frequently asked questions
Can I get a prepaid credit card?
Ans. Yes, you can! Prepaid credit cards India offers are relatively new and need no approval. Moreover, anyone without a bank account or even a good credit score can own this card too.
What is a prepaid credit card?
Ans. Prepaid credit cards are a useful budgeting tool as they help you stay away from debt by only allowing you to spend the amount loaded on the card. If this card is linked with a checking account, you can still cap a fixed amount on that card every month.
Learn more about getting your first credit card here: https://www.youtube.com/shorts/rTdsmKpDlEQ