A reloadable credit card does not necessarily have any interest bearing feature attached to it, unlike a standard checking account which may have a higher credit limit than a traditional debit card. A reloadable credit card can be used for purchases in both retail stores and online, while a debit card can be used online and when used in a retail store can also be reloaded with cash.
A reloadable credit card works similar to a cash card, since you will usually only have access to funds that are on your account. If you do not have enough money to make a purchase, you can use your card to pay for it, as long as your account is active. A reloadable prepaid card has no set monthly or yearly fees, and no interest charges unless your credit limits are reached. These cards work just like a credit card, and most of them also offer a free ATM card so that users can withdraw cash from their accounts.
If you have a good banking history and a steady income, you will probably qualify for a reloadable credit card. The interest rate on most reloadable cards is quite low compared to the rates offered by banks, and they have no annual fee to pay. Many websites now offer reloadable prepaid cards that can be used in online shopping and online bill pay.
One drawback to reloadable cards is that they can take up to eight weeks before you can actually access the money in your account. This delay can sometimes cause a reload to become nearly impossible to pay off. You should avoid reloading your card during times when there is an increase in interest rates, such as when an interest rate change is announced. In addition, you should avoid reloading your card if your balance is more than $1000 unless you plan on paying your balance off in full every month.
To use your online credit card, simply go to an online banking website and fill out the application form. Some sites will require you to create an account with them, while others will process your application on their site. A valid identification card number is also required in order to complete the application.
If you wish to use an online credit card for online bill payments, make sure to always pay your balance off in full each month to avoid accumulating unnecessary finance charges. Make sure that you pay your credit card balance on time to avoid penalties.