What are the benefits of prepaid MasterCard? - Mastercard Questions


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What are the benefits of prepaid MasterCard?

Answered on | Updated on March 5th, 2011
The content is accurate at the time of publication and is subject to change.

MasterCard has revolutionised the financial scenario. Users have the opportunity to make use of the numerous benefits offered by the MasterCard in almost all purposes of life. Whether it is shopping, travelling or paying of bills, all purposes can be solved by MasterCard.

MasterCard is of two types. They are prepaid MasterCard and post paid MasterCard. While in post paid MasterCard, the expenses that a user incurs get delivered to the user at the end of every billing cycle. In pre paid, the user already deposits a fixed amount in the credit card account and makes expenses accordingly. While both the types of credit cards have some common benefits, there are other benefits that are exclusively found in prepaid MasterCard.

Benefits of pre paid MasterCard

Pre paid MasterCard actually help in containing expenses. Since such MasterCard have amounts deposited with them, the user actually can calculate his budget and spend accordingly. He has the chance to plan his expenses.

  1. In post paid MasterCard, the amount that is shown in the bill needs to be repaid back within the grace period. In pre paid MasterCard, a statement gets issued to the cardholder giving him the list of expense that he incurred and the balance left after the expenses have been deducted.
  2. In post paid MasterCard, higher interest rates are charged if payments are not made in time. In pre paid MasterCard, there is no chance of higher interest rates being charged as the user has already paid for his expenses.
  3. In post paid MasterCard, the interests accumulate to increase the actual amount that has to be repaid to the card company. In post paid MasterCard, no such increased amount needs to be repaid back as the credit account already stores a fixed amount deposited by the card holder.
  4. Finally a pre paid MasterCard adds a good credit score against the user of the credit card. This helps the user to get loans approved quickly as all financial facilities before being granted check the credit history of the applicant. A good credit history makes the bank sure of the repayment of the amount that has been borrowed by the debtor. Moreover a pre paid MasterCard and a good credit history will make the card holder avail some of the additional benefits like lower interest rates, lower annual charges, reward points and increased grace period for repayment.
Disclaimer: This editorial content is not provided or commissioned by the credit card issuer(s). Opinions expressed here are the author's alone, not those of the credit card issuer(s), and have not been reviewed, approved or otherwise endorsed by the credit card issuer(s). Reasonable efforts are made to present accurate information, however all information is presented without warranty. Consult a card's issuing bank for the terms & conditions.
All rates and fees, and other terms and conditions of the products mentioned in this article/post are actual as of the last update date but are subject to change. See the current products' Terms & Conditions on the issuing banks' websites.
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