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Choosing the best credit or debit cards can be confusing if you don’t know which one best suits your needs. Before deciding on which one to settle for, it is essential that you begin by knowing the difference between prepaid debit cards and credit cards. Knowing the basics will equip you better in making your selection. What Is Prepaid Debit Card? Prepaid debit cards enable you to make payments for purchases without acquiring debts since you will by supplying yourself with funds. For this reason, you will not extend credit limit. All you have to do it deposit cash in your account or top up your debit card. When you run low, by simply transferring funds to your debit card account you can once again furnish the alternative payment facility. If you make a payment with zero debit card balance, the transaction will be denied. Prior to using your card, you will require paying a setup fee. However, you will not have to concern about installment rates or interest charges. The application process for the prepaid debit card is quick. What Is Prepaid Credit Card? Prepaid credit cards, or secured credit cards, are similar to a standard credit card with the only difference being the credit limit. Unlike the standard credit cards that allow you unlimited balance at your disposal, secured cards maintain a limit that is determined by you; as a cardholder you have to make a security deposit before using prepay credit cards. Secured credit cards are a safe way to make purchases as you can control your spending. The minute difference between prepay credit cards and debit cards is this: a secured credit card makes payment on limited credit while a prepaid or secured debit card withdraws cash from the amount deposited into the account linked with the card. Comparing Credit And Debit Cards Different banks and monetary firms offer credit and debit cards with different features and benefits. Therefore, rather than arbitrary selection, compare credit cards and debit cards according to your daily needs as well as your credit history. If you have scored poorly in your credit record or have suffered bankruptcy, rebuilding credit using unsecured credit cards is impossible. No bank or firm will permit you to their trust in such a situation. For this reason, the limit feature of the two card types offers you a big advantage of rebuilding your credit score. When you compare credit cards, look out for rewards such as gift cards, points, cash rewards, miles, and discounts on services and products. More importantly, compare interest rates charged for using the service. Depending on your situation and the bank you choose, you will be charged accordingly. Make sure that you are charged reasonably. Whatever decision you make, continue to pay your bills on time to get back on track with your credit ratings. For more information about compare credit cards pleae visit us at www.compareprepaid.co.uk.
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