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Research: Prepaid Visa® Cards -

In spite of the recent economic credit crunch, consumers continue to call for credit. However, getting approved for a major credit card is not that easy today. This is because banks and card companies realize when people are losing their jobs, they are more likely to not pay their credit card bills. Fortunately, help for consumers may soon come from a new type of a prepaid card which combines the features and functions of credit and prepaid cards. Such "hybrid" prepaid Visa® and Mastercard® cards are considered a convenient and safe payment tool during the economic crisis for several reasons.

Prepaid cards are traditionally safer in terms of credit risk than credit cards because they are not used to borrow money. Before you start using your prepaid card account, you first need to load it with your own funds. In this sense, a prepaid card works much like a gift card, with the only difference being that it helps you build your credit history. Until very recently, prepaid cards were only popular among those who could not qualify for a regular unsecured bank card. However, with the appearance of "hybrid" offers, more and more people are turning to "prepaid" cards as a payment tool. So, what is so special about the "hybrids"?

Consumers can still deposit money onto such prepaid Visa and Mastercards and can make purchases anywhere that they are accepted. In addition to this convenience, consumers can also receive credit lines of up to $1,000 to help them cover short-term financial needs. However, in order to receive that $1,000 credit line, consumers are first required to establish a direct deposit account with the issuing bank. While it may seem that we are describing a secured card rather than a prepaid card, a secured card is not as flexible because it does not offer you the convenience of depositing your own money into its account.

The credit line feature on a prepaid card also helps financially-challenged consumers survive in a tight financial situation without paying excessively high interest rates, such those charged on payday loans. It is also relatively easy to be approved for a "hybrid" prepaid card because you do not need to provide your credit history references and you probably won't even be required to provide job income information.

It's not yet known when such "hybrids" will enter the card market on a large scale. However, if you are interested in prepaid cards, perhaps as a tool to boost your credit score, then you can do a search on our website. A number of the prepaid Visa cards available online may serve your purposes well.

In conclusion, try to avoid taking on more credit while the economic crisis rages on. If you urgently need money, you'd probably be safer obtaining a small personal loan or a payday loan rather than applying for a revolving credit line.