Credit Card Gift Cards - 3 Advantages
Using a credit card or a debit card with a credit card symbol for daily purchases has become standard practice today among most consumers. Plastic is often preferred over cash because they are accepted by the vast majority of merchants around the country and around the world. And, relying on them means relying less on carrying paper money and coins.
Of course, traditional cards require that the user apply for the card through the issuing financial institution. During this process, the consumer's credit history is checked, and an interest rate is determined based upon their credit score and other factors. Translation: they can be a hassle to obtain and are costly to use.
Alternatively, a way to use credit cards while avoiding the hassle of the whole credit check and monitoring process is through the use of prepaid gift cards. Also sometimes called prepaid debit cards, each card carries the symbol of one of the major issuing organizations - such as Visa, MasterCard, American Express, and Discover.
The convenient thing is that you get to use these cards while skipping the application process. The cards are purchased (or reloaded) with a certain dollar amount and then can be used until that amount has been depleted. And, they can be used to make purchases anywhere that a regular card is used - including online or in-store.
Lots of Ways to Use Them
Credit card gift cards can be purchased for all sorts of uses, including:
* giving one as a gift in lieu of cash
* purchasing one for yourself or your significant other before going on a trip in order to avoid carrying cash around on your person
* giving one to your college student child as a way to make purchases while managing their money while in school
* using it as sales incentive tool or to reward customers or partners
If you are thinking about buying credit card gift cards for someone you care about, here are 3 advantages to using them instead of traditional credit cards or cash:
1. They are safer than cash:
Carrying around cash can be just plain dangerous. If you lose your cash, it is gone. And, carrying cash in unfamiliar places has the tendency to attract crooks. With a prepaid gift card, you are covered against lost or stolen cards and unauthorized purchases.
2. Purchases have all of the protection advantages of a regular credit
card:
If you make a purchase and the item breaks or gets damaged within a certain period of time (e.g., 90 days), the issuer will cover those purchases. (See issuer agreement for details)
3. Getting one does not require a credit check and usages is not reported to credit agencies:
These cards are very easy to get. There is no application process to go through. Because the card is not issued in anyone's name, you just purchase the card and use it yourself or give it as a gift to someone you care about or want to reward. And, since it is technically not a credit card, the use of the card does not get reflected in the credit reporting system. It's the easiest-possible way to get the convenience of having a major credit card without having to apply for one.
The ease-of-use of credit card gift cards make them ideal for use by you, people you care about, or people you know.
