1. Put your personal spending in check. Although you can only use your debit card if you have an available balance, there is still the tendency to spend your funds on unimportant purchases.  If you’re having trouble controlling your spending, avoid saving a large amount of cash in your debit account.

2. Monitor your purchases. To keep track of your spending, make it a habit to write down each purchase or each transaction you pay with your debit card.  Keeping a record of your transactions can help you manage your debit account more effectively.

3. Avoid overdraft fees. Although exceeding your limit is not allowed, there may be instances when your purchase is accepted even it exceeds your available balance.  However, you will be charged with an overdraft fee which can cost $30 or more.  Avoid such fees by checking your account first before making a purchase.

4. Look out for “holds”. Some hotels and rent-a-car companies may hold some of your available funds in exchange for a reservation.  In this case, you want to make sure that you understand the exact “hold” amount and how long it would be held by the merchant.  Better yet, you may consider using a credit card or paying the bill in full with your debit card.

5. Choose a strong PIN code. A recommended PIN code is a random combination of digits that has nothing to do with your personal information such as your birthday or anyone in your family’s birthday or your wedding date.

6. Check your account often. Be sure to check your debit account online regularly especially after making a purchase.  Check the exact fees that you incurred from the transaction.  The Federal Law protects debit cardholders from fraudulent transactions but only up to $50 and you need to inform your bank within two days after the transaction was made.

7. Do not link to your savings accounts. To be safe from fraud, it’s best not to link your debit account to your savings account.

8. Do not use your debit card for large purchases. If you plan to make a large purchase online, don’t charge it on your debit card.  Keep in mind that debit cards offer only a limited protection so you may not get much help in case there is a problem with your purchase.  Instead, use a credit card that offers a Fraud Liability Protection so you can have the option to dispute charges should you need to.

About the Author

Tara Tiemann is a credit analyst of Go-prepaid.com and has been a resource site for people who want to live debt free! If your on a budget using prepaid debit cards, pre paid credit cards and prepaid cell phone service can save you big money!

Basic Fees Associated with Prepaid Cards

Activation Fee. Activation fees can range from $9 to as much as $100, depending on the issuer and the type of prepaid card.

Negative Balance Fees. Normally, debit cardholders are not allowed to overdraw.  However, there are cases when your bill can exceed your available balance, and you will be charged with a negative balance fee.

Decline Fees. Since overdraw is not allowed, your transaction will be declined if you try to use your debit card for payment without sufficient balance in your account.  However, you can get penalized with decline charges.

Daily Limit Fees. Some issuers impose a daily limit or a maximum amount of charge per day.  Thus, once you reached that limit, your transaction can still be declined even if you have existing funds in your account.

Cash Advance Charges. You can withdraw cash from your debit account using an ATM.  However, you can also incur cash advance charges.

Reloading Fees. If you reload your debit card by making a direct deposit, no extra fees shall be charged.  However, if you try to reload using other services, you may incur an additional reloading charge.

Additional Charges. Some gas stations, restaurants, hotels and car rental service who accept debit card payment may impose a “hold” or extra charge on your bills.

ATM Balance inquiry. There can be a minimal fee of $1 or less each time you check your balance from the ATM.

Maintenance Fees. Some prepaid card issuers charge a monthly maintenance cost, aside from the yearly activation fee.

Inactivity Charge. You may also get penalized if you fail to use your debit card on any transaction for more than 60 days.

Customer service Fee. Before calling your debit card’s Helpline, make sure that you understand the possible fees you can incur.  Not all issuer provide a free helpline.

Transaction Charges. Most prepaid debit card issuers will charge you an additional cost for each transaction you make- be it offline or online.

Account termination fee. If you want to close out the account, you can be charged with a termination cost as well.

Card replacement. In case of lost, you must pay a fee if you request for a replacement.

Card renewal. Your prepaid card will expire after a certain period (usually three years or longer).  After that period, you will pay an extra fee for requesting a new card.

About the Author

Tara Tiemann is a credit analyst of Go-prepaid.com and has been a resource site for people who want to live debt free! If your on a budget using prepaid debit cards, pre paid credit cards and prepaid cell phone service can save you big money!

Here are some tips on how you can use a prepaid debit card to rent a car without hassle:

Explore your options. Different auto rental companies have varying policies in accepting renters. Do your research online and get to know which companies allow prepaid debit card payment. It is also a good idea to call up different branches of the same company as the rules may vary from one branch to another.

Be prepared to wait in line. Paying with a credit card is the quickest way to make a transaction. If you’re going to use a prepaid debit card, expect that the process will take much, much longer. You may have to wait in line at the car rental counter as your credit history, proof of auto insurance, and other Identifications are verified.

Load up your debit account. Aside from the cost of the car rent, you must have available funds in your debit account. This is known as the “hold” or “block” – funds which are linked to your checking or savings account.

Visa or MasterCard. Merchants and auto rental services only accept debit cards that are supported by major processors such as Visa or MasterCard. If your debit card does not bear the Visa or MasterCard logo, major rental companies may refuse to do business with you.

Check your credit rating. Your personal credit rating will be questioned as well. If you have a history of bankruptcy or if you have a low credit score, you may find it difficult to rent a car using prepaid debit cards.

Prepare necessary documents. You will be asked to submit supporting documents such as utility bill, proof of auto insurance, return airline ticket, itinerary, driver’s license, and valid IDs. The names and signatures on the documents you submitted should match with the name and signature on your prepaid debit card.

About the Author

Tara Tiemann is a credit analyst of Go-prepaid.com and has been a resource site for people who want to live debt free! If your on a budget using prepaid debit cards, pre paid credit cards and prepaid cell phone service can save you big money!

In this article, let’s discuss how prepaid debit cards can be the perfect tool for teaching young people how to handle credit without falling in the trap of uncontrolled debt.

Prepaid Cards – How They Work

A prepaid card can be used for purchases from a regular store or an online store much like a traditional credit card.  It is cashless form of payment.  However, instead of paying for your balance at a later time, a prepaid cardholder must first deposit cash in his/her account before charging expenses to the card.  In short, you can’t use your prepaid card if you don’t have existing funds.

Prepaid debit cards can also be used for sending and receiving cash to people from afar.  Instead of paying a wire money transfer service, you can send money to your family members using your debit account.  Once sent, the recipient can withdraw the money from a nearest ATM.

Both Visa (Visa Buxx) and MasterCard (Allowcard ) have created their own versions of prepaid debit cards especially for teens.  Unlike credit cards, prepaid debit cards do not have interest rates, overdraft fees or late penalty charges.

Teach Your Teens About Credit Management

If you are a parent, here are practical tips on how you can train your teenagers on how to manage credit responsibly:

Limit their credit usage. Deposit only a limited amount of cash in your teenager’s debit card.  They should know that once their available balance is spent, they will need to work their own budget.

Let them earn it. Parents can set house chores or tasks for their kids to help them understand about the value of work and money.

Keep track of their spending. Parents can easily monitor their teen’s spending habits by simply logging in to the account.  Most debit card issuers provide an online account access for easy checking.

Involve your teens. When choosing a prepaid debit card, get your kids involved.  In comparing different debit cards in the market, study possible choices with your child.  Read the fine print or the Terms and Conditions together.  This way, your teen will be aware about the costs in maintaining the debit card as well as its limitations.

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About the Author

Tara Tiemann is a credit analyst of Go-prepaid.com and has been a resource site for people who want to live debt free! If your on a budget using prepaid debit cards, pre paid credit cards and prepaid cell phone service can save you big money!

It doesn’t really matter if you already own a credit card or not.
Having a debit card in your wallet can come in handy at any time. What benefits can you expect from a prepaid debit card? Here are 8 benefits to think about:

1. You can set your own spending limit. With a credit card, it can be a little difficult to control spending because you have the option to purchase in advance and pay at a later date. With a debit card, that’s just not possible. If you want to limit your spending, deposit only the amount you plan to spend for the entire month. This way, you can be more in control of your budget.

2. Safer for travels and shopping around. Why carry a large amount of cash in your wallet when you can bring a prepaid debit card instead? Just like credit cards, debit cards offer protection against lost. In case your card gets stolen, you can call your issuer to have your account blocked against unauthorized transactions. Your debit card will be replaced with a brand new card number.

3. Avoid bad debt. Debit transactions are automatically paid the moment the purchase was made. If you don’t have an existing balance in your debit account, you will not be able to make any purchase. Thus, it eliminates the risk of bad debt.

4. No credit check. You don’t need to have a perfect credit history to get a prepaid debit card. Just like department store cards and gas station cards, credit check is not a requirement. Even with no credit or poor credit, you can easily get one.

5. No monthly bills. No bills will come your way, no payment due dates, no late penalty charges, and no interest rates. Imagine how stressful it must be to be worrying about all these.

6. Withdraw cash from any ATM at any time. Prepaid debit cards are also great during times of emergencies when you need to cash. For parents who need to send money to their college kids on a regular basis, a debit card is the faster, safer, more convenient and cheaper way to do that.

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7. Can be used locally and internationally. If you travel to different countries, choose a prepaid debit card with a Visa or MasterCard logo. This way, you can be sure that your card will be accepted at leading merchants worldwide.

8. Build credit history. The newest prepaid debit cards in the market today offer credit reporting to the major credit bureaus (Experian, Equifax, TransUnion). Those who want to establish credit or rebuild bad credit can get a debit card without worrying about getting rejected.

About the Author

Tara Tiemann is a credit analyst of Go-prepaid.com and has been a resource site for people who want to live debt free! If your on a budget using prepaid debit cards, pre paid credit cards and prepaid cell phone service can save you big money!

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Money Transfers and Prepaid Debit Cards – Perfect Partners

Anyone can easily get a prepaid debit card whether he/she has a credit history or not.  Even people who suffer from a history of bad credit can get one without difficulty.  To be able to use the money transfer feature, both the sender and the recipient must have a prepaid debit card.

If you need to send money, all you have to do is make a deposit to your prepaid debit account and transfer it to the recipient’s debit account.  If you already have existing funds in your account, sending money is as easy as logging in to your online debit account.

Once the transfer has been done, the recipient can instantly make a withdrawal from an ATM nearest to his/her location.  The recipient can also choose not to withdraw the funds and use the prepaid debit card for payments.

Who Can Use Prepaid Cards for Money Sending

Prepaid debit cards are ideal for people who often need to make money transfers on a regular basis.  For instance, parents who have college kids in boarding schools can use prepaid cards for sending their monthly allowance.  If you are working abroad, you can also use a prepaid debit card for sending money to your loved ones.

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The great thing about prepaid cards is that they are supported by major credit card Networks like VISA, MasterCard and American Express so you can be assured that the card can be accepted in a wide range of merchants and establishments worldwide.

Small business owners who need to send salary payments to their employees can greatly benefit from prepaid debit cards because it’s a more convenient way to make money transfers and it is free as well.

About the Author

Tara Tiemann is a credit analyst of Go-prepaid.com and has been a resource site for people who want to live debt free! If your on a budget using prepaid debit cards, pre paid credit cards and prepaid cell phone service can save you big money!

A prepaid debit card looks like a regular credit card. You can carry it with you when shopping at the mall or at groceries and use them as payment. Instead of bringing cash, just bring your prepaid debit card with you and enjoy the convenience. Prepaid debit cards can also be used in restaurants, gas stations, and even at online merchants.

Since they are prepaid, the debit card holder must place enough funds in his/her account before using the card. The purchases will instantly be deducted from the card holder’s debit account so there’s no need to worry about due dates or repayments.

Prepaid Debit Cards vs Checking Accounts

Instead of opening a checking account, having a prepaid debit card offers the same functions that a checking account provides but with less limits. For instance, if you have bad credit, a prepaid debit card is a lot easier to avail than opening a checking account. There’s no need to carry around checks or worry about getting your blank checks stolen. In case your prepaid debit card is stolen, you can simply call your bank right away so that your account can be put on alert.

Using Prepaid Debit Cards for Internet Shopping

Another advantage of prepaid debit cards is they can be used in shopping online even if you don’t have a credit card or a bank savings account. For many shoppers who prefer to shop from the internet, having a prepaid debit card is a great tool because the risk of credit card fraud and identity theft are avoided.

Prepaid Debit Cards vs. Pay Checks

Prepaid debit cards are now used in government offices as well as in private firms as tools for distributing monthly salaries to employees. Prepaid debit cards are easier to use than issuing paychecks. If you have a home based business or a small business, you can use prepaid debit cards in sending your payments to your employees regardless of their location. Now that freelancing is gaining wide popularity among business owners, prepaid debit cards are also enjoying the recognition.

Prepaid Debit Cards vs Credit Cards

Prepaid debit cards do not allow card holders to carry over balances they incur from month to month. With a prepaid debit card, the card holder can only purchase the maximum amount that is available in his/her debit account. Neglecting payment dues and incurring interest rates and penalty fees are also avoided.

This limitation can actually be an advantage especially for those with uncontrolled spending habits. Without the option to carry over balances, a debit card holder is encouraged to use the debit card only for reasonable purchases. If you’ve had trouble with bad credit before, switching to a prepaid card can be a good solution.

About the Author

Tara Tiemann is a credit analyst of Go-prepaid.com and has been a resource site for people who want to live debt free! If your on a budget using prepaid debit cards, pre paid credit cards and prepaid cell phone service can save you big money!

The Unsecured Student Credit Cards

An unsecured student credit card works like any regular credit card. The student is given a credit line which means he can charge expenses on his card as long as he doesn’t exceed this limit. Most student credit cards give a $500 credit limit while others give as much as $1,000 credit line. Since this their first time applying for a credit card, the credit limit given to students are often lower than those allotted to long time credit card holders.

Nevertheless, getting a student credit card is a good way to start building your own credit history while still in school. In fact, being in a college is the only time you can apply for an unsecured credit card without difficulty. Once you’ve graduate, lenders and credit card companies would often require a good credit history to approve your application.

Although not all student credit cards give a low credit limit, this restriction can work to your advantage. By sticking with a low credit line, you also avoid the risk of incurring very large debts on your account. Remember, as a credit card holder, you should do your best not to exceed beyond 50% of your allotted credit.

The Student Prepaid Debit Cards

Now let’s talk about the student prepaid debit card. It may look like a credit card and it can actually be used to pay for your purchases just like a credit card but it is different in some ways. How? Instead of a line of credit, you’ll need to deposit money in your account first in order to use the card. If you don’t have existing funds in your debit account, you won’t be able to use the card for payments.

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Some parents prefer to give their college student a prepaid debit card instead of a credit card to avoid the risk of uncontrolled spending. There are prepaid debit cards today that do report to the credit bureaus, so you can still build your credit history using these cards.

However, the disadvantage about prepaid debit cards are the costs that comes with it. For instance, each time you use your debit card for payment, you are charged with a transaction fee. Aside from this, you’re expected to pay an annual fee to keep your card active. However, if you do your research well, you can find debit cards with reasonable costs and charges.

Which is Best?

Being a credit card holder comes with the responsibility of submitting your monthly payment on time. While a debit card frees you from this obligation, it does have its limitations. For instance, you may not be able to use your prepaid debit card on an emergency if you didn’t place funds in your account. Thus, making the choice is up to you.

If you do decide that you prefer a prepaid debit card over a student credit card, make sure that your debit card issuer will report your payments to credit reporting agencies otherwise you won’t be building your credit history at all.

On the other hand, if you choose a student credit card, see to it that you are up to the challenge of keeping up with your payments. Don’t forget that establishing a credit history alone isn’t enough. Instead, you should strive to build an excellent credit and keep it that way.

About the Author

Tara Tiemann is a credit analyst of Go-prepaid.com and has been a resource site for people who want to live debt free! If your on a budget using prepaid debit cards, pre paid credit cards and prepaid cell phone service can save you big money!