Card receipt to sign and submit – this is briefly outlined the principle of credit cards. Of the credit card companies and banks issuing credit cards, there are classical, which give the cardholder a credit line individually defined and so-called prepaid credit cards, which must refer to the use of the card holder before a credit. The advantage for the card lies in the clarity of expenditure, ultimately, only the amount to be paid with the card that was previously paid. The prepaid card is therefore also for students, because of their age and lack of income still can not get a credit card. However, if studies abroad or going to school, parents can transfer money from Germany to the card account and to provide their children abroad with money. Prepaid credit cards are also a way for customers who show a negative , get another credit card.
Basically, the banks get in prepaid Credit is no information in the report and a the deal even go there. The possibilities are equal for both types of credit. Depending on the card companies – VISA or MasterCard – there are several million outlets available. These are in addition to shops, boutiques and travel companies, more and more stores on the internet. In addition, there are two types of credit card and the opportunity to cash machines and at bank counters to withdraw. In general, the card-issuing banks charge a fee for this service, which may be in traditional credit cards ever 5-10 per withdrawal. With prepaid credit cards, the fee is significantly lower. The same is true when paying with the card abroad.
This falls outside of the EU, the so-called expatriate remuneration. Prepaid cards cost as opposed to the normal credit cards for an annual fee, while the normal map is often distributed free of charge to checking account. Therefore, some banks pay interest on the prepaid credit with attractive interest rates. Conclusion: Prepaid credit cards offer in addition to cost control also – depends on the provider – credit interest rates and lower fees. This however is an annual fee to pay.