Definition of a prepaid credit card
Prepaid credit cards can be literally broken down to understand, “prepaid” means in advance, in advance, the latter “credit card” is Credit card meaning. Haha! Isn’t that a little redundant? It’s not redundant, explain it to those of you who don’t know. Knowledge is never redundant, as long as it’s useful to people, it’s something that makes sense.
To give you an example
This is a picture of a prepaid credit card with the words ‘Prepaid’ and ‘credit’ on the card.
What are the common types of cards
As an example, there are 3 common types of Visa credit cards.
- visa prepaid
- visa debit
- credit card
What exactly does it all mean? What’s the difference? Let me organize and analyze the following, so that you can have a more in-depth understanding of the card selection with the card.
|Name||Type||Is an overdraft available?||Funds||Whether it can be reused|
|Visa prepaid||prepaid card||No||pre-charge||Yes|
|Visa debit||Internal balance||No||Original balance||No|
|Visa credit card||Traditional credit cards||Yes||Balance of bank authorizations||Yes|
With this table, you basically understand the 3 types of cards and their differences, right? If you are still not clear, please look at the picture below.
- visa prepaid: You can spend as much as you have on the card, not more.
- visa debit: You can spend as much as you’ve deposited in advance, and no more.
- credit card: Spend as much as you want within your credit limit and remember to pay it back after the bill is incurred.