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What's the difference between a Mastercard and Prepaid credit card?
What is the Difference between Mastercard and Prepaid credit card?
A credit card, mastercard, visa, discover, amex have limits of an amount of money you can spend and you pay a monthly fee to continue using the card. There is a minimum fee and you should never just pay the minimum if it is possible. The interest rate can vary and so can the amount of money the card has available. Look at it this way, a company, bank, any sort of institution could issue you a card with with $100. This is kind of like a gift and they are trusting you will make payments. A prepaid credit card is very simple. Basically, you “load” the card with however much money you want to put on it before you use it. For example, if you are taking a vacation and you need to rent a car but do not have a credit card, you purchase a prepaid card (make sure it has the visa or mastercard logo) you buy a prepaid card and apply $1000 to it. That card now has a spending limit of $1000. A prepaid card has as much money available on it as you load into the card.
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