How To Make Online Purchases Without A Credit Card.

Credit cards are the most popular form of online currency exchange. They're convenient and they are the life blood of ecommerce.

However, they can be a financial hazard if not handled with care. Case in point...

I have this friend who had her credit card account closed down by the bank. She wasn’t too happy about this, understandably, but the bank has a thing called terms & conditions. She failed to take this into consideration when he decided to make a few too many late payments - 3 months worth.

Anyway, she had a dilemma; on the one hand she still wanted to make online purchases but on the other she no longer had her trustee credit card.

So she set out to find alternative ways to make online purchases. Here's what she found discovered...

Option #1: Sign up for a free PayPal account!

Now here’s the deal…

You can make your online purchases by attaching a bank account (of your choice) to your PayPal account. This is a relatively easy process – and it’s free!

All it takes is three easy steps: (The following is taken directly from the PayPal website)…

Step 1: Log in to your PayPal account and click on Set up bank funding on the left hand side of your Account Overview page. When prompted, enter your bank details and review our bank funding agreement.

Step 2: When we have received your bank details, we will deposit two small security amounts into your bank account. When you see your next bank statement, make a note of these amounts.

Step 3: Log in to your PayPal account and tell us what these two amounts are. When you have completed all three steps, you can then start sending PayPal payments funded by your bank account.

An official statement from the website states the following:

“Bank Funding lets you easily make payments with PayPal using your bank account. Plus, you'll be safe because PayPal never debits your bank account without your authorisation.Make sure there are sufficient funds in your bank account before sending a bank funded PayPal payment

Option #2:

This one is a personal favorite…

A debit card! In America it is commonly known as a prepaid credit card.

Additionally, there are options for the “credit impaired” consumer. BUt I won't cover that at this time.

The danger with the Internet is that if you do not track your finances - i.e. your purchases -they can easily get away on you. That's why a debit card is so valuable. You have to put your own money on your debit card before you can go online and buy anything. No interest, no woriies.

The other benefit is that it trains - or should I say rehabilitates - the "credit challenged" because they have to save up first before they buy anything. Thus, new, better habits are formed & everyone wins!

Oh, I think that's a knock at your door. It's the repo man. It looks like you'll have to get a new debit card! : b

I'm out.

Paul