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How To Select The Best Prepaid Credit Cards For Teenagers

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A Brief Introduction About Prepaid Credit Cards

We all use credit cards these days, for withdrawing money, shopping , paying bills, etc. and the internet was the main and most important contributor behind this popularity, it gave users unlimited possibilities of reviewing and shopping for every product they could possibly think of, that being said, it's obviously noticeable that a big category of the credit card users who are looking to purchase products and/or services are the teenagers, they form a big chunk of the credit card and/or the internet users cake, a chunk that once was not satisfied with the limited possibilities available to them since major credit card companies like MasterCard, Visa and American Express weren't offering any credit card forms for minors at the time, until NetSpend came up with the idea of prepaid credit cards, and scored a huge success to the level where all the major credit cards merchants started offering them

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“Prepaid Credit Cards Could Be A Great Gift For Teenage Family Members Or Relatives”

What Are Prepaid Credit Cards?

Prepaid credit cards are issued by credit card brands like American Express, Visa or MasterCard, however, it's not a real "credit card", this has became a misnomer over time through the media and marketing hype, it does not allow you to borrow money on "Credit", regular credit cards gives you a payment system to follow, so once a credit card is issued a revolving account is created, one that grants you a line of credit one that allows you-as its holder-to purchase items or goods or even borrow hard cash for your payments, with the promise to pay for these expenses later while prepaid credit cards only allows you to deposit as much as your predetermined card limit then you can make any purchases in the same way you usually use your credit card except there is no need for a PIN.
Prepaid credit cards are more like debit cards issued by banks or financial institutions, you deposit money first, then you can withdraw or shop with the card.

Prepaid Credit Cards Benefits

Since prepaid credit cards do not have a credit line involved it can be issued to anyone over 13, it was marketed to teenagers so they can make online purchases without the need of the parents to complete transactions. And the best thing about them is that you don't need to come up with $500 or more to open a new account.

Disadvantages?

Prepaid credit cards purchases are not charged any interest, however, you will be charged for purchases fees and monthly fees plus other fees.
Prepaid credit cards were described as "an expensive way to spend your own money" by the FCAC because of the many fees required to obtain one.

Netspend Prepaid Cards


You wanna here of of those huge success from nothing stories?...Here is one

According to Wikipedia, Netspend was founded by Roy and Bertrand Sosa, two brothers who were teenagers when their family moved from Mexico to the US in 1986. Twelve years later in 1998, they launched Netspend from their one-bedroom apartment with an initial investment of $750.

Traditional banking and financial institutions were leaving a big part of the market un-served and the brothers noticed that.

"NetSpend's stated goal is to provide consumers who lack established credit or banking relationships with the security, flexibility and convenience typically associated with debit and credit cards. The sub-prime credit consumer is usually charged higher fees on these product's transactions and features when compared to mainstream consumers that receive them for free or at little cost. The additional costs are representative of the additional risk that accompany the typical consumer profile who is shunned by traditional financial institutions."

Yeah....thats Vice Young, looks like he's got one too 

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Accountnow Prepaid Cards

Accountnow Prepaid Visa and Prepaid MasterCard cards are very similar to debit cards and online checking accounts ad it keeps your money safe in a prepaid card account instead of carrying it around in cash. All AccountNow prepaid accounts are FDIC insured, like a checking account, to ensure the safety of your money.

Getting an AccountNow Prepaid Visa or Prepaid MasterCard card is much easier than qualifying for a credit card or checking account. 100% guaranteed approval ensures you will never be rejected as long as you have valid identification.

If you have bad credit history or no credit at all you can still get an Accountnow prepaid card because they never check your credit bureau report. Even if your banking history isn't great or you are on ChexSystems, you are still eligible to get one of our prepaid card accounts.

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Example Of Similar Prepaid Gift Cards On Amazon

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  • gtalan Dec 30, 2010 @ 8:36 am | delete
    The NetSpend story is a good one!
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