Pre-paid credit card – the new 'must-have' for teens
11/09/2006
A pre-paid credit card is the new 'must have' for American teens, with British versions of the product scheduled for release soon.
Functioning similarly to normal credit cards, the product works by allowing the user to spend money that is already loaded onto the card, in a similar manner to mobile phone top-up services.
Users must be a minimum age of 13 and anyone can apply for card the since providers do not run credit checks or ask for evidence of a bank account.
The cards allow users to spend money at any shop that accepts Visa or Mastercard and can also be used to withdraw money from cash machines.
Providers suggest that the product will prevent youngsters from falling into debt since money cannot be spent beyond the amount already loaded onto the card.
The Guardian states: "Once the money runs out, you can top up your card either in cash at designated outlets such as PayPoint shops or post offices or - more to the point - parents, relatives and older friends can top it up online using their debit or credit cards."
Recently, Mint stated that it will be launching a new pre-paid credit card that aims to improve the way the pre-paid services operate and to serve customers better.
Automated application approvals and real-time transaction updates are among the additions to Mint's new card.
Functioning similarly to normal credit cards, the product works by allowing the user to spend money that is already loaded onto the card, in a similar manner to mobile phone top-up services.
Users must be a minimum age of 13 and anyone can apply for card the since providers do not run credit checks or ask for evidence of a bank account.
The cards allow users to spend money at any shop that accepts Visa or Mastercard and can also be used to withdraw money from cash machines.
Providers suggest that the product will prevent youngsters from falling into debt since money cannot be spent beyond the amount already loaded onto the card.
The Guardian states: "Once the money runs out, you can top up your card either in cash at designated outlets such as PayPoint shops or post offices or - more to the point - parents, relatives and older friends can top it up online using their debit or credit cards."
Recently, Mint stated that it will be launching a new pre-paid credit card that aims to improve the way the pre-paid services operate and to serve customers better.
Automated application approvals and real-time transaction updates are among the additions to Mint's new card.
