The Truth About Pay in Advance Credit Cards

Pay in advance credit cards aren’t all they’re cracked up to be.

It’s not hard to see why pay in advance credit cards have become so popular. In today’s day and age, it’s almost impossible to live without a credit card. Without one, you can’t book a hotel, can’t rent a car, and sometimes you can’t even rent a movie. People who don’t qualify for a traditional credit card have to turn to alternative credit card resources in order to survive. However, before you turn to pay in advance credit cards for your credit card needs, there are some things you ought to know.

Outright Fraud

First and foremost, you need to understand that many offers for pay in advance credit cards are nothing but outright frauds. You send them the money and you never get anything in return. Somehow, the pay in advance credit card you have already spent money on just never arrives and you can’t find any way to contact the company you sent the money to. You’re plumb out of luck.

Ridiculous Conditions

The pay in advance credit cards that are legitimate often have ridiculous strings attached to the card. For example, some cards will assess you a fee if you don’t use the entire balance in a given month. Other pay in advance credit cards will charge you a monthly fee no matter what you do and there are even other pay in advance credit cards that will charge you a ridiculous “set-up” fee in addition to all the other fees intended to bleed you dry.

Other Options

There are sound alternatives to pay in advance credit cards. You may want to look into getting a secured credit card. Secured credit cards are very different from pay in advance credit cards, though they operate much in the same way. You first send in a deposit to the secured credit card company. That deposit is then put into an interest-bearing account and you are given a credit card with a credit limit that matches your deposit amount.

Unlike pay in advance credit cards, you do have to make monthly payments on secured credit cards and you do pay interest if the balance isn’t paid in full each month. However, dealing with a reputable secured credit card company is much wiser then opting for pay in advance credit cards.

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