Prepaid credits work in exactly the same way that a regular credit card works. To pay for your item or service, you swipe your card and then either enter your PIN (which is supplied with the card) or sign the receipt. The total amount of the transaction is then withdrawn from your card immediately.

The most important difference between a prepaid credit card and a standard credit card account, is that with a prepaid card, you are spending your own funds, rather than using money borrowed from a lender. Therefore, the card can only be used until the money that you have put onto your card yourself has run out. Funds can be loaded onto your prepaid card by cash at your bank or at the Post Office, via bank transfer, or via payment from another credit card.

A prepaid card looks like a regular credit card, and can be used to buy all sorts of everyday expenses, including petrol, groceries and bills. Prepaid credit cards are particularly useful, however, when you’re shopping online or overseas.

Some online retailers and service providers, such as certain airlines and hotel websites, only accept payment via credit card, and a prepaid account allows you to shop on their websites without needing an active credit card account.

The other benefit of a prepaid credit card is the flexibility it provides for certain people and situations. For example, if you’re new to a country and you haven’t yet built up a credit rating – or you have a history of bad debt, and you’re starting your credit record from scratch – a prepaid credit card could help you build your credit file.

Also, if you’re going on holidays, a prepaid credit card offers you the opportunity to load a certain amount onto your card, so you can avoid paying foreign currency exchange fees – and so you can stick to your pre-planned budget!

With prepaid credit cards you will not be subjected to credit checks, so you can usually sign up for a card immediately. Just beware for the fees: some providers charge a card application fee on top of monthly service charges, cash load/deposit fees and withdrawal/purchase fees, so its beneficial to browse around for the best credit card deal at the time.

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Unfortunately, online banking is done through computer and the Internet, which have a habit of being insecure. If you are not careful when using online banking, you could be giving away your personal banking information to others. There are a few things that you can do to ensure that you are careful when utilizing online banking services.

Secure Log In Check

Before you sign in and use an online banking program, you should check the bottom of the web browser. In the bottom left hand corner will be a small yellow lock. This lock means that you are giving your information over a secure connection. Without this lock, you could be giving your information to a third party without knowing it. The lock means that the website and data entry information are encrypted. This makes it much harder for anyone who is attempting to steal your log in information. If you are trying to use online banking but find that it is not over a secure connection, do not use it. It may be convenient, but it can and will cost you in the long run.

Password Protection

You need to make sure that your password is secure. If you are not careful, your password could be easy to crack. Anyone who wanted to get a hold of your financial account and financial information could do so. Be sure to create a password that is random and hard to ‘guess’. Also make sure that the online banking company has a secure way to send you a lost password. Without it, it could be easy for anyone to request your password.

Logging Out

When you are finished with your online banking session, you need to be sure that you log out. If you do not physically click the log out button, you may stay signed in. Anyone who uses the computer that you used to check your bank account could then get into your online banking account. It could also give more time to those people who want to crack into your bank account.

Checking for the lock that indicates a secure log in is crucial to being careful when using online banking. It helps you to ensure that you are giving your password and information over a secure connection. Password protection, and having a secure password, will allow you to make it difficult for others to log into your account. By logging out, you can be sure that you have stopped the connection, preventing anyone (both online or in person) from finding and using your account. You need to be responsible when using online banking to ensure that your finances are safe.

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