When you go overseas on a vacation or business, it is always good practice to carry a prepaid credit card with you. A prepaid credit card can make life easier in many ways. It comes with added paybacks, extra safety features and expediency, and help during times of crisis. Prepaid credit cards are a lot better for a number of reasons that make good financial and practical sense.
It has become very popular amongst tourists to take prepaid credit cards while travelling abroad. It can be used in a number of tourist destinations like any other plastic card. Traveler`s checks are still in demand, but they do not have all the additional benefits that prepaid credit cards bring with them. Carrying large amounts of cash is easy because even if the credit card were to be lost of stolen, you can have it insured beforehand and ensure that you get the whole amount back. Obviously you will have to pay for the insurance by paying a certain premium.
There are many prepaid credit cards which are custom designed for the needs of each individual. Each product is different in its own way, and can make a big difference when you are travelling. You do need to remember that credit cards will charge a certain usage fee if you are using them overseas or in foreign banks. Prepaid credit cards will not charge this sort of commission, as it will not be affiliated to any one bank. It is more like a debit card into which you put money and draw out whenever you want. If you use a credit or debit card overseas, you will have to pay a large amount of fees for service charges. These fees can include withdrawal fee, inquiry fee, money exchange fee and also foreign bank fee.
Some credit cards also offer zero percent interest rates on purchases made overseas up to a certain amount if the said amount is repaid within a set grace period. Credit cards can also offer emergency cash and tragedy protection. This helps you avail emergency cash by agreeing to pay a certain fee when you return to the country of your origin. You can also get special loss protection, wherein a new credit card will be mailed to you by speed post within a couple of days if the old credit card were to be lost or stolen.