(by 23 people)
Weigh the benifits, drawbacks, and compare prepaid credit cards.
All the information you need to get the right prepaid credit, or debit card for your needs. Whether you have good credit or bad, there are several benefits to using prepaid credit cards. We'll review and compare the different companies which provide this service and discuss ways in which you may benefit from using them. You'll also learn why this type of service may not give you the benefits your expecting.
What Is A Prepaid Credit Card?
This type of card requires that you pay before you charge. Basically, this gives you most of the benefits of having a major credit card like Visa, or Master Card regardless of your credit rating, and without even having a checking, or savings account. However, notice I said "most benefits".
Weighing The Benefits.
2. Make purchases online. You can use this type of card to make instant purchases on the Internet and over the phone. There's no need to wait 3 business days for a service like Paypal to withdraw money from your bank account.
3. On the other hand, and if you like using Paypal, you could add you prepaid card to your Paypal account - giving you instant funds and no waiting period.
4. Online Bill-pay. Use your new card to quickly and easily pay your household bills online.
5. Reservations. You can use this card just like any other to make reservations at major hotels, airlines, and car rental agencies.
5. Security. You'll enjoy some of the same protections that come with using a major credit card.
6. No Interest. You'll have the benefits without the expensive interest rates.
7. Privacy. A prepaid card gives anonymity for purchases on Internet or over the phone. Now I'm not talking about illegal purchases here. There are plenty of reasons why some may want to make a purchase which is not traceable back to them.
8. Makes a great gift. Send these cards to a loved one in another state or over seas.
So, what are the drawbacks? I mean there's always a catch...right?
1. Do prepaid cards help your credit rating? Many of these companies will claim that they report to the credit reporting agencies when in fact they don't. There is special licensing involved and it cost them money to do so. You'll want to get this in writing if one of your goals is to use a prepaid card to fix your credit.
2. You'll most likely have to pay some fees to use one of these services. Some only require a setup fee of around $5 or $10. A credit builder credit card - like Eufora - will probably have monthly and annual fees associated with it, but this is a great way to raise your credit score. However, you'll find a service below which offers a free credit builder service.
3. Monthly subscriptions. If you're planning on using this card for a subscription based service, or something which requires monthly charges to your credit card, a prepaid card may not work. Some companies may not accept this type of card because there's too much chance that you may not have an
Prepaid Credit/Debit Cards.
The AccountNow Prepaid Visa Card offers all the benefits of a prepaid card and is perfect for those with bad credit, no checking account, and bankruptcies. AccessNow is open to everyone, and is great for teens. Approval is quick, easy, and guaranteed. AccessNow is one of the few prepaid credit/debit cards that will help you build your credit.
Other benefits include:
* No security deposit
* Free paycheck direct deposit
* Use as a debit card wherever Mastercard is accepted
* Instant, safe, and guaranteed approval
* FDIC insured up to $100,000
* ATM withdrawls
* Free online bill pay
* Free credit builder
Fees for the classic plan include a $9.95 (non-refundable) activation fee, .50 cents for pen-based purchases, $2.00 for ATM transactions, $1.00 for ATM account balance inquiry, and a monthly maintenance fee of $4.95. This includes a monthly online statement, and web services. Deposits and signature purchases are free.
Tips For Getting The Best Prepaid Credit Card.
2. If your not planning on using the money soon then don't post it to your account. The fees, over time, will continue to be deducted whether your using the card or not.
3. Pick 3 top companies and research consumer opinions on the Internet. Read what others are saying about the company, and ask questions yourself.
Some Helpful Links.
- Prepaid Cards: What They Are, How They Work
- Some basic information from the National Consumers League.
- Prepaid Credit Cards: Debit is Better
- Why a debit card is better, but requires a bank account.
- Compare prepaid credit cards at About.com
- This is a great resources to learn about various companies and what they offer.
Get Help With Credit Card Debt Consolidation.
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New Guestbook
Of the cards I've researched, the top three are:
Model Debit Mastercard
Eufora Debit Mastercard
Ethos Debit Visa
When you add up all the hidden fees of all such cards,
these are the cheapest(around $70 a year to use).
Posted December 05, 2007
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Posted October 20, 2007
Thanks for the info!!!Nice to see that there's a site that "TELLS IT LIKE IT IS",and in plain English..
Posted October 13, 2007
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alonee_bann
thanks for visit to my lens. your lens is also great. Posted July 24, 2007 |
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gearon_garlic
thanks for provide valuable information about prepaid credit cards. Posted June 26, 2007 |
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Kelpie
I was actually going to get one from western union because I wanted to be able to buy things online on my own. They charge way too much on overdraft fees and fees for placing the money on the card. The only reason I wanted to get one is because I am not 18 yet. Posted June 13, 2007 |
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