Is a Prepaid Mastercard a Credit Card?
Many use prepaid credit cards for their online and other transactions but is a prepaid mastercard a credit card?
Yes and No- a prepaid MasterCard is NOT a credit card because you are not actually borrowing money that you are required to pay back.
However, it IS considered a credit card because it may be used anywhere a regular credit card is accepted whether for online purchases, gasoline, restaurants, hotel and car reservations.
Is a Prepaid Mastercard a Credit Card?
A prepaid MasterCard may be used to pay online or in physical establishments where MasterCards are accepted as a payment option. You will not be exposed to liabilities for each use because the money you spend for your purchases is not borrowed money, but money that you have pre-loaded onto the card.
For this reason, it is quite popular among parents who want to train their children how to be financially-responsible and as a pre-cursor to credit cards.
Another use for a prepaid MasterCard is for traveling out of the country, where there is a limit to how much cash you can or want to carry.
It can be quite difficult to travel with a limited amount of cash and using a MasterCard in places where it is one of the accepted payment options is convenient.
Aside from these, some pre paid MasterCards can be used to earn points for gas purchases or other partner merchandisers included in your card provider’s promo.
It is perfect for students, individuals on strict budget, travelers and those who don’t want to worsen their credit situation by taking out more credit card loans.
So if you are considering getting one, now is a good time because more and more card companies are trying to outdo each other with excellent prepaid mastercard deals. You will surely find one to suit your needs.
The next time someone asks you ‘is a prepaid mastercard a credit card’, you’ll know that it’s an alternative payment option like a credit card.
However, it will not affect your credit score if you used it because it is like a debit card and you essentially spend your own money each time you use it.
Courtesy of CreditCardShoppe.com
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