What Are the Pros and Cons of an Anonymous Prepaid Credit Card?
For security when shopping online knowing the pros and cons of an anonymous prepaid credit card is essential. The prepaid credit card is a physical card that is in your name but does not contain personal financial information on the account. There is no need to such information as the card is funded with cash and can only be used to the limit of the cash in the account.
The Pros of Anonymous Prepaid Card Cards
Perhaps no credit card is as easy to obtain as a prepaid card. The cards are widely available from stores such as WalMart and may carry the brand name of that merchant. They also have a logo from a major credit issuer such as Visa or MasterCard which ensures the credit card will be accepted almost anywhere standard credit cards may be used.
Tighter credit laws have led some issuers of prepaid credit cards to ask for personal information on applications. However, it's still possible to find anonymous prepaid credit cards that require no more personal information than your name and home address.
The goal in using such cards is to have the ability to make purchases in stores and online without the risk associated with use of regular credit accounts. You decide what your spending limit is on an anonymous prepaid credit card account as you choose how much money to place in that account. Your spending limit is the amount currently funded to the card.
For those who want to limit their impulse buying, the prepaid credit card is a great option. If you budget $100 per month for clothing but find you often spend two or three times that much, you can control personal buying habits by using a prepaid account funded with only $100 dollars.
Interest charges do not concern you as there is no interest charged because you are not borrowing any money on your account. The minimal charge for the card and a low monthly maintenance fee are far less than interest charges on a revolving credit card.
It's possible to control your entire family budget with the use of anonymous prepaid credit cards as you can have as many accounts as you please. There is no qualification required to open account and no waiting to see if you are approved.
Consumers who are burdened with credit card debt often point to poor spending decisions as the reason for their debt. Finding unexpected items on sale leads to impulse buys and shopping for groceries in today's huge food markets can result in spending much more than expected.
Using cash is one possibility but the same consumers who tend to overspend with their credit cards report cash seems to slip through their fingers. By establishing anonymous prepaid credit cards for food, clothing, and other categories of expenses and funding only the amount planned for that category, spendthrift consumers can learn to curb their shopping enthusiasm.
When using an anonymous prepaid credit card, you cannot overspend if you add only the funds allocated to pay for a certain purchase or category of purchases for the month.
The Cons of Using Anonymous Prepaid Credit Cards
If you need to build credit, the prepaid credit card may not help you. Unlike secured credit cards, prepaid accounts are not reported to any of the credit rating bureaus. There is nothing to report as no credit is being issued. All purchases come directly from the funds placed on the card.
If you should lose your prepaid credit card, it's possible for someone to use fraudulently. The card is worth the amount funded no matter who is using it for purchases. However, the limit of liability is also low as only the amount funded can be stolen.
Conclusion
Whether buying offline or online, the anonymous card provides a level of security consumers may need. The funds available are limited by the money placed on the card. Should the credit card be lost, a thief could only steal that small amount of funds.
The best prepaid credit cards do not require the buyer to give personal financial banking information or to reveal his social security number. It is becoming more difficult to find a card that does not require the SSN but those cards are still available if you look for them.
The anonymous card is safe to use online, easy to obtain, and provides a useful method for budgeting if you find you frequently overspend when shopping.
