Credit Cards FAQ
Q: What is a secured credit card?
A: Secured credit cards are credit instruments that are issued by financial institutions such as banks. Like all credit cards, the secured card is established with specific terms relating to the rate of interest applied to the balance, minimum monthly payments, and a pre-determined credit limit.
Q: What is a prepaid credit card?
A: Prepaid credit cards are also known as “pay as you go” cards. They work much like traditional credit cards. The difference is that prepaid credit cards don’t involve borrowing money from the issuer. You preload the card with money and then use it wherever Visa or Mastercard are accepted. Late fees and interest charges are not applicable. Simply refill the card when the balance is low or depleted.
Q: Does a prepaid credit card is similar with a debit card?
A: They are similar, but debit cards are limiting. Some businesses don’t accept them, and banks don’t report debit card activity to credit rating bureaus. Using a debit card won’t help improve your credit score or prove your credit worthiness.
Q: What are credit card rewards?
A: Credit card rewards are bonuses that you receive as you use your card. In general, the more you use the card the more points or rewards you get from the company.
Q: What is a unsecured credit card?
A: An unsecured credit card is usually used by customers who have a bad credit history or who have no credit history at all.
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