Prepaid Credit Card What is it?
A prepaid credit card offers the ability to pay for purchases and use a debit card just like a credit card. A prepaid credit card differs from a regular credit card in that it does not commit to a credit account. So for every payment, you need to transfer money to the card, which you can then use as you wish.
What is a Prepaid Credit Card?
The approach is thus quite similar to that of prepaid phone subscriptions.
Prepaid credit cards are relatively new entrants to the Finnish financial product market and, for many, the concept of prepaid credit cards is still unknown. However, prepaid credit cards are becoming more common and are already being offered in Finland by several financing companies and, for example, by Good Finance Bank.
See how Good Finance’s credit cards perform in our comprehensive credit card comparison:
The Pros of Prepaid Credit Cards?
+ Unlike credit cards, the age limit for prepaid credit cards is the only search criterion and the age limit varies between card issuers. It is possible to get a prepaid credit card even if your account has a debit entry or if you do not have enough income to get a regular credit card.
+ Easier to manage money spending and avoid indebtedness, as you always need to transfer money to your card for payment. So it’s also good for people who have trouble managing their money.
What about the disadvantages of a prepaid credit card?
– A prepaid credit card does not offer an interest-free payment for purchases, just like a regular credit card, and thus does not offer the same flexibility for everyday payments as a credit card.
– Prepaid credit cards are invariably more expensive than regular credit cards from banks and finance companies.
– A prepaid credit card does not include the benefits of some credit cards, such as travel insurance or security against purchase.
Here are a few Prepaid credit cards:
Good Finance MasterCard PrePaid Rechargeable Card
Good Finance is the only bank operating physical branch offices in Finland which offers a prepaid credit card. Good Finance’s prepaid credit card can be purchased by persons over the age of 13, but the buyer must be at least 18 years of age.
The value of the card can be recharged between 20 and 2500 euros (under 18 years max 500 euros).
- Opening fee 5 €
- Downloading value to card 0 €
- Maintenance fee (if the card has not been used for 6 months) 1 €
- Cash withdrawal with Otto ATM 0 €
- Cash withdrawal with non-Otto slot machine € 2 + 2.5%
- Redeeming card value at branch 5 €