Prepaid Credit Card

  

Categories: Credit, Banking

No risk to the lender. That is, when you prepay on a credit card, there's no real "credit" you're getting. You've already transferred cash from you bank account to the card issuer, and you can just go ahead and buy stuff until that prepaid-ness is over. It's a lot like loading up a wallet with cash and being able to buy stuff until the cash is gonezo.

Why would you want this feature? Well, you might have terrible credit, so banks won't give you a card. Or, if they do, credit on it will be very expensive. Or you might have no discipline, so you just spend money the way a horse eats hay until it explodes.

When you prepay things, limits are set and stomachs remain intact.

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Finance, a la shmoop. What is a current asset? Current yeah it's kind of a [Picture of a currant on a plant]

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socialist raisin there, you know they all look about alike but that's a [Soldiers marching in front of Stalin with currants for heads]

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least that's how long, you know lock in your rental rate. So if your [Someone signing a contract]

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remember it here around Shmoop. Examples? A bond coming due in a year or less. [Bond document]

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deposit or Bank CDs which come due in less than a year. that's a current asset. [List of short-term paper]

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from their banks you know checking account. They buy stocks as well, shares [New interest rate is very small]

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of goog can be easily converted into cash quickly. Shares in Google are a [Current asset stamp]

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current asset. Ounces of gold, yep easily a current asset. All right you get the

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idea, so what's not current well fourteen thousand acres of solar panel land that [Huge fields full of solar panels]

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